Legault willing to compromise on tariffs, except on supply management and French

Premier Legault is willing to compromise on tariffs, except on supply management and the French language.

Unsurprisingly, the topic of the tariff war returned to the forefront on the first day of the Council of the Federation in Ontario.

Quebec Premier François Legault still wants the federal government to reach an agreement with President Donald Trump by Aug. 1 in order to provide predictability for the country’s economy, even if it means that some tariffs remain in place. However, Ottawa must not compromise on “key sectors” for Quebec, the premier insisted.

“Obviously, our hope is that there will be no tariffs. But if Mr. Carney decides to sign an agreement that includes certain tariffs or adjustments, it must not be on supply management to protect our dairy producers. Nor should it be on culture and language,” Legault said on Monday upon his arrival at the premiers’ meeting in Ontario.

This meeting comes nearly two weeks after Trump threatened to impose new 35 per cent tariffs on Canadian imports as of Aug. 1. If they were to come into effect, these tariffs would not apply to goods that comply with the Canada-United States-Mexico Agreement (CUSMA).

The premiers will also meet with Carney on Tuesday to discuss the status of trade negotiations with the United States. Last week, the prime minister suggested that he had little hope that a tariff-free agreement would be signed with the Americans.

The tariff war is therefore likely to dominate discussions among political leaders this week.

Defence

Legault also wants to take advantage of the summer meeting of the Council of the Federation to discuss defence investments with his provincial counterparts and Carney.

Carney has already announced an additional $9 billion in military spending this year. And he does not intend to stop there, as Canada has committed to spending five per cent of its GDP—the new NATO target—on defence by 2035. To achieve this goal, the federal government will have to spend nearly $150 billion per year in 10 years.

Legault wants to ensure that Quebec gets its fair share of military spending contracts, particularly in sectors such as aeronautics, ships, critical minerals and artificial intelligence.

“We have an opportunity to replace jobs with jobs in the defence sector. We have huge companies like Bombardier and the Davie shipyard that can create tens of thousands of jobs in the defence sector. So it’s important to create those jobs in Canada,” explained the Quebec premier.

When it comes to defence, Legault is not only targeting Canada. In recent months, he has made two economic missions to Europe (Germany and France), notably to promote Quebec’s comparative advantages in this area.

Faced with the disengagement of the United States, the European Union wants to invest a colossal €800 billion (CAD $1.276 trillion) to rearm itself.

The increase in federal military spending is aimed in particular at stimulating the Canadian economy and reducing Canada’s dependence on the United States in the context of a tariff war.

At their meeting this week, the premiers are also expected to discuss energy security, national sovereignty and security, domestic and international trade, labour mobility, health and immigration.

The Council of the Federation is being held in Huntsville, in the Muskoka region of Ontario, until Wednesday.

This report by The Canadian Press was first published in French on July 21, 2025.