Tariffs trigger layoffs and closures in Quebec as U.S. trade war deepens

U.S. trade measures spark layoffs and a mill closure as economic tensions escalate.

Layoffs have begun and at least one Quebec business has shut down, as the effects of new U.S. tariffs ripple through the province, a clear sign the trade war with the United States is escalating.

U.S. President Donald Trump signed an executive order increasing tariffs on Canadian goods from 25 per cent to 35 per cent on products not covered by the United States-Mexico-Canada Agreement (USMCA).

For many Montrealers, the latest news is a reminder to buy local.

On Facebook, a lumber mill in Saint-Michel-des-Saints, two hours north of Montreal, announced it was letting go of 250 employees and suspending its activities until October, and cited tariffs as the reason.

Another company based in Saint-Georges, known for manufacturing semi-trailers, is planning to lay off more than a hundred workers.

Economist Julian Karaguesian said more companies could potentially face the same fate.

“At the local, regional level, we can see more closures, more unemployed,” he said.

Karaguesian added that in Quebec, the aluminum and steel industries are being hit the hardest, as tariffs are already high in those sectors.

“The 50 per cent tariffs on steel. And now there’s 50 per cent tariffs on certain copper products. Those are hurting more than the previous 25 per cent tariff, which is now 35 per cent.”

On X, Premier François Legault wrote that the tariffs are harmful to businesses and workers, and that it was important for Quebec to diversify its markets.

“President Trump is shaking up the system, and we have an opportunity in this crisis to build out our export markets and to build a Canadian economy once more,” Karaguesian said.