Legault not ruling out imposing tax on electricity exported to U.S. in response to tariffs

Premier François Legault is keeping the option open of following Ontario’s lead and imposing a tax on electricity exported by Hydro-Québec in response to U.S. tariffs.

However, Legault specified that Quebec’s situation is very different from that of its Ontario neighbour when it comes to energy.

“In Ontario, they have electricity sales that are not in contracts, so they can tax as they want. We, currently, do not sell electricity outside of contracts,” explained the Quebec premier during a press scrum in Terrebonne, on Montreal’s North Shore, late Monday afternoon.

Quebec currently has a contract with Vermont for the export of electricity, “which must be respected,” mentioned Legault.

Other, much larger contracts with Massachusetts and New York are due to come into effect.

“I’m not ruling anything out, even the possibility of increasing the price in those contracts,” the premier said.

A few hours earlier, his Ontario counterpart Doug Ford announced a 25 per cent surtax on electricity exported to three neighbouring American states in response to President Donald Trump’s tariff threats.

Foreign Affairs Minister Mélanie Joly welcomed the news, noting that “the premiers are using levers that are to our advantage.”

Asked what Quebec should do, she said that “the leadership shown by the province of Ontario should inspire many others.”

A response on aluminum

Rather than electricity, François Legault once again raised the possibility of imposing “counter-tariffs” on aluminum exports to the United States, while Quebec supplies nearly 60 per cent of this material to its southern neighbor.

“It is impossible for the United States to replace us, so we could really hurt Mr. Trump,” he argued.

The U.S. president plans to impose 25 per cent tariffs on all steel and aluminum imports to the United States, including Canadian products, starting Wednesday.

Legault pointed out that the federal government and the provinces still have up their sleeves the possibility of implementing a second response targeting $125 billion in American products on April 2 — the date when Trump’s pause on some tariffs on Canadian exports could come to an end.

“Afterwards, we do not rule out adding tariffs, among other things on aluminum exports,” said Legault.

Asked about the election of Mark Carney as leader of the Liberal Party of Canada, Legault hopes that the future federal prime minister will opt for a response that is just as strong as that of his predecessor Justin Trudeau. He said he has the same expectation of Conservative leader Pierre Poilievre.

“I will work with the prime minister who will be chosen by Canadians. But I expect to have them as allies to fight against Donald Trump,” he said.

In view to an upcoming federal election, Legault also plans to reiterate his request to the Liberal and Conservative leaders to reduce the number of temporary immigrants in Quebec.

By-election

Legault was in Terrebonne on Monday to support Alex Gagné, his candidate in the by-election that was called following the departure of former superminister Pierre Fitzgibbon.

The leader of the Coalition avenir Québec and Gagné visited a steel structure plant in the region.

“We saw concerns there, as we feel everywhere in Quebec and even in Canada,” said Legault, during a speech delivered to activists gathered in the CAQ candidate’s election office.

–With information from Audrey Sanikopoulos

–This report by La Presse Canadienne was translated by CityNews