Tariff war: Minister Fréchette cautions about possible Hydro-Québec response
Posted January 16, 2025 8:04 pm.
The Minister of Economy and Energy, Christine Fréchette, is keeping her cards close to her chest as to whether Hydro-Québec could increase the price of its electricity exports to respond to the threat of 25% tariffs from President-elect Donald Trump.
“We’re going to keep our game tight for the moment,” the minister replied on the sidelines of a speech before the Chamber of Commerce of Metropolitan Montreal on Thursday afternoon.
The Legault government has sent contradictory messages to this effect. Premier François Legault and Hydro-Québec President and CEO Michael Sabia have separately raised this possibility during media appearances.
Minister Fréchette had ruled out this possibility on Wednesday, before a meeting of the Council of the Federation. The provincial premiers, with the exception of Alberta, have raised the possibility of cracking down on energy.
“We are sending the message that there will be reprisals if tariffs are imposed,” said Fréchette on Thursday. “But the very nature of these reprisals remains to be defined.”
Trump’s threats have raised great concern in Canadian economic circles. The Republican elected official, who will officially take office on January 20, is threatening to impose 25% tariffs on Canadian exports to the United States. He has even gone so far as to mention the annexation of Canada under threat of economic retaliation.
During her speech to the business community, Fréchette acknowledged the seriousness of the threat posed by the future tenant of the White House. “The Trump tax could inflict significant damage on us,” she admitted. “We must be prepared for any eventuality and develop different scenarios.”
She pointed out that 70% of Quebec’s merchandise exports go to the United States. She estimates that these exports are linked to 400,000 jobs.
She reiterated the argument that the American and Canadian economies are integrated and that a tax on Quebec products could also penalize American consumers and businesses.
She gave the example of aluminum. The Quebec industry represents 75% of the North American industry. “So, it will be very difficult for the United States to do without us, especially if they no longer want to import aluminum from China.”
–This report by La Presse Canadienne was translated by CityNews
