Legault throws support behind ‘targeted’ response to U.S. tariffs

Quebec Premier François Legault on Thursday endorsed Ottawa’s response to the latest round of U.S. tariffs, saying any retaliation must be targeted to avoid doing more damage to Canada’s economy.

Canada was “relatively spared” by U.S. President Donald Trump’s move on Wednesday to levy tariffs on most countries, Legault said, but the nation must remain “on guard.”

The White House said goods covered by the free-trade deal between Canada, the U.S. and Mexico were exempted from the new round of tariffs, but Trump said that previously announced 25 per cent tariffs on automobile imports would start Thursday.

In response, Prime Minister Mark Carney announced Canada will match Trump’s 25 per cent auto tariffs with a levy on vehicles imported from the United States.

Legault said he was “very comfortable” with Carney’s retaliatory measures, adding he doesn’t support dollar-for-dollar counter-tariffs that he believes could hurt Canadians more than Americans, and he said Trump “doesn’t need help” doing damage to the U.S. economy.

“We have to be prudent with our response,” Legault said. “We can’t hurt ourselves more than the Americans.”

The Quebec premier also wants Canada to renegotiate its free-trade deal with the United States and Mexico as soon as the federal election campaign is over, to avoid piecemeal negotiations and remove uncertainty.

A Montreal real estate developer says the current U.S. tariffs on Canadian products could increase costs in his sector because construction materials purchased from the U.S. could be made with Canadian parts that face American tariffs.

“Tariffs for sure will affect the supply chain and construction,” said Benjamin Sternthal, the president of Kodem Developments Inc. “It’s unclear how, because it’s unclear which products right now are gonna fall under tariffs and which will not. Some products go back and forth. The raw material comes from Canada, it gets processed in the US, gets shipped back to Canada.”

Benjamin Sternthal believes Canada should spend less time trying to change Trump’s mind about tariffs and more energy developing new partners in other countries.

“Right now, all our energy should be on finding new business partners,” he said. “In business, you can’t work with people who don’t wanna work with you. To go chase a market that doesn’t wanna do business with you, why?

“This is the time right now for Canadians not to start whining about what’s happening in the US. We can’t change that course, but we can change our future. We can change where we choose to sail. We can change who we choose to work with. We’re great, we have incredible talent, incredible companies, let’s go find new markets, let’s develop new relationships, let’s move on.”

Carney, meanwhile, told reporters on Thursday that if he wins the April 28 election, he would sit down immediately with the president to “find areas of common ground and agreement in a new economic and security partnership.”

Legault said the trade war is an opportunity for Quebec to transform its economy, especially by building new trade ties with Europe. “We have Europe with 450 million people,” he said.

He said Europe wants to invest 800 billion euros on a new military procurement program.

“Of course we would like to have a part of that,” he said.

“So we are in a good position.”

Speaking to people at a grocery store in downtown Montreal on Thursday, there was the feeling the U.S. tariffs will increase the cost of living. As well, there appeared to be a general frustration with the administration south of the border.

“He already added the existing tariffs,” said Mohammad Adas. “He might add extra ones. So is he gonna stop now?”

“Me as a student, I am very concerned about things getting more expensive,” said Sofia Guerra, a student from Colombia.

“It was really a dumb move on the president’s part,” added Oscar Wong.

“Feel betrayed,” said Zak Dorfman. “Also feel like we need to diversify our economy to other countries, Europe.”