City of Montreal sets aside $36 million for businesses as U.S. reciprocal tariffs loom

Luc Rabouin, the president of the mayor's executive committee, speaks to reporters on Monday, June 10, 2024. (CTV News)

City of Montreal sets aside $36 million for businesses as U.S. reciprocal tariffs loom

With American President Donald Trump once again set to announce reciprocal tariffs Wednesday, Montreal is ready to support local businesses.

The city’s measures, which compliment those implemented by Quebec in early March, aim to help small and medium enterprises that are not eligible for assistance programs from higher levels of government.

The city is putting aside about $36 million for those companies and says access criteria will be relaxed to cover as many as possible and ensure Montreal businesses can stay resilient in “this unfavourable economic climate.”

“The tariffs represent a danger not only for the Canadian economy, but also for the American economy, by creating inflation on both sides of the border and disruptions in supply and production chains,” said Mayor Valérie Plante in a news release.

“Montreal’s economy is resilient, and we are determined to strengthen and protect it.”

Effective immediately, the city is granting a six-month moratorium on capital and interest repayments for eligible companies. For a company with a loan balance of $120,000, this moratorium could represent $15,000 in additional liquidity, the city says.

Exceptionally, loan repayments of up to 84 months will also be offered to eligible businesses that have been severely affected.

The city is also streamlining resources to the Montreal Business Line (514-394-1793) so it can serve as a single point of contact for companies under pressure who need assistance.

“We won’t let you face this storm alone!” said Luc Rabouin, who is responsible for economic development on Montreal’s the executive committee, adding there are potentially millions of jobs at risk.

He told journalists Wednesday that many Montreal businesses deal with the U.S., and he understands the uncertainty felt collectively. He said that even without major tariffs in place, consumer habits have changed in anticipation for the worst.

Harkening back to the pandemic, he said Montrealers have already weathered major uncertainty and made it through while the city’s economy bounced back.

“We know businesses are worried, we know people are worried because they might lose their jobs. We feel the uncertainty and worry, and no one knows exactly what is going to happen,” said Rabouin.

“In this context, we want to say that we’re here to lend a hand.”

He stressed that Montreal already has a strong and diversified economy and is bracing itself for what’s to come.

The city also wants to encourage Canadian businesses to become suppliers in Montreal.

Like the Quebec government, the city will be handing out penalties between 10 and 25 per cent to American companies bidding on future contracts in the city — especially in sectors like health, manufacturing and information technology.

The city will study more measures for market diversification, productivity enhancement, supply chain resilience and local purchasing are being studied.