Up to $50M in loans for Quebec companies vulnerable to U.S. tariffs

Quebec Premier François Legault says companies vulnerable to U.S. tariffs can apply for loans up to $50 million.

Legault announced the new loan program today, hours after U.S. President Donald Trump imposed 25 per cent across-the-board tariffs on Canadian goods, and a 10 per cent levy on energy products. 

“We want to be very clear–we will not let ourselves be intimidated by Donald Trump–It’s time to roll up our sleeves,” said Legault.

The premier says the loans – part of the “Frontière” or Border program – will offer liquidity to companies over the next 12 months to give them time to adjust their business models or supply chains.

“Financial assistance will take the form of loans with a maximum term of seven years, with a repayment moratorium of up to 24 months,” reads the government press release.

The Premier reiterated that between 100,000 and 160,000 jobs could be lost as a result of U.S. tariffs.

He encouraged companies with development projects to turn to Investissement Québec.

Legault is also asking the SAQ to remove American bottles from its shelves. “The government is also asking the SAQ to stop supplying grocery stores, agencies, bars and restaurants with American alcoholic beverages,” reads the press release.

The Premier also announced that American companies would be penalized when bidding on public tenders.

The province will impose penalties of up to 25 per cent on bids by American companies who participate in public calls for tenders if those companies aren’t already established in Quebec.

While Trump has imposed a 25 per cent tariff on most goods, Legault says the province’s valuable aluminum industry will only be subject to the 10 per cent levy that’s being imposed on energy and critical minerals. 

The Premier has already stated that Quebec needs to redeploy its economy and correct the “weaknesses” that have dogged it for “decades.” According to Legault, the province is too dependent on the U.S. market.

Quebec companies that have ties with the U.S. are now worried for the future.

Firebarns is a Quebec company that makes BBQ and hot sauces with about 20 employees. Brokering a U.S. deal took a year and $1 million dollars invested. They now stand to lose $400,000 because of the new tariffs.

General Manager Pierre-Olivier Drouin is undeterred by the tariffs–comparing them to the challenge of COVID-19.

“It’s really a long process and now we are on the final step of the process,” said Drouin. “And now we launched Fire Barnes in the US market next week, the sixth brand to a thousand stores. So, it’s a chance for us and we take the chance.”

“We got through COVID-19 and now we face all this mountain of problem with the tariffs,” said Drouin. “I stay positive and I stay motivated, but it’s the lifestyle of a entrepreneur.”

Drouin says it’s worth the risk because he estimates U.S. sales at anywhere between $2 to 2.5 million in the first year. 

CityNews spoke with some Montrealers to see what their thoughts were on tariffs.

“I am angry about the tariffs like everyone else–but if you spit up in the air it will fall down in your face,” said one Montrealer.

“Lots of uncertainty for sure,” said another Montrealer. “I’m thinking about it and wondering if it will have an impact.”

“I am not in support,” said another local. “I think Canada-American relations are very important and I respect you guys as our neighbour country.”

“I find it’s very hard for everybody because life is already expensive and I hope that we will get some good news soon,” said another.

–This report by La Presse Canadienne was translated by CityNews