Quebec Premier François Legault has warned that U.S. President-elect Donald Trump’s threatened tariffs will have a negative impact not only on the Canadian economy, but also on the U.S. economy.
in Editorial US Wednesday Publications the hillLegault argued that tariffs on Canadian imports would cause “a new spike in inflation, hurting the American economy, many businesses, and especially ordinary Americans.”
“Since the free trade agreement signed by President Ronald Reagan, (what I know best) the economies of Quebec and the United States have become so integrated that if we impose tariffs on our products, the This would be a serious self-inflicted blow to the economy,” Legault wrote.
“Already the threat of tariffs is creating a lot of uncertainty and hindering investment on both sides of the border.”
The letter was submitted ahead of a meeting between the Canadian Prime Minister and Prime Minister Justin Trudeau in Ottawa on Wednesday. Trump is scheduled to be inaugurated on January 20th.
Economists say the expected 25% tariffs would be devastating to Canada’s economy and put some key industries at risk. Ontario Premier Doug Ford said Tuesday that up to 500,000 people in Ontario alone could lose their jobs if the sweeping tariff regime is implemented.
In his letter, Legault asked President Trump to give Canada time to meet the president-elect’s stated demands, including increased border security and immigration controls, before imposing tariffs.
Legault said imposing a 25% tax on exports from Canada and Mexico would reduce U.S. gross domestic product and push up inflation.
As an example, tariffs on aluminum, Quebec’s main export, would raise the cost of “beer cans, auto parts, airplane parts, and many other products for U.S. consumers and businesses.” Mr. Legault said.
He also said Quebec exports military aviation supplies to the United States and that Quebec’s hydroelectric power supplies New York with “clean, reliable and cheap electricity.”
“Trump Tower’s energy costs will go down, just to name a few,” he wrote.
“Although Canada will not be the 51st province to join the Union, our economies are very intertwined and we already have a customs union when it comes to trade.”
