Quebec exporters had braced to wake up to new tariffs on Wednesday, with business leaders warning the measures could cost the province customers, investments and jobs.<\/p>\n
Business in the U.S. is \u2018a strong relationship\u2019<\/p>\n
Among the list of goods that would be impacted by tariffs is wooden furniture, which St-Arnaud said would impact Hupp\u00e9\u2019s entire catalogue.<\/p>\n
\u201cWe don\u2019t want to stop doing business with United States. It\u2019s too important for us (given) the proximity of that market. And it\u2019s a strong relationship since so many years,\u201d she said.<\/p>\n
While St-Arnaud says her company will tolerate the whiplash trade conditions to keep their large American clientele, it is not sustainable over the long term. Eventually, they would have to raise prices to keep up with rising costs, but she believes U.S. customers won\u2019t want to pay more.<\/p>\n
While the company is already looking to diversify clients by expanding their Mexican and Latin American market, breaking into the European furniture market isn\u2019t an option for a Canadian company. St-Arnaud says Hupp\u00e9 is meant to serve as an alternative to European-style furniture for a North American market, with the appeal of producing and shipping locally.<\/p>\n
\u201c(Europe has) a lot of competitors for us. It\u2019s the same niche. So it\u2019s more difficult to stand out in that market,\u201d she said, plus there are added costs including shipping across the Atlantic.<\/p>\n
Trump has regularly threatened tariffs throughout his second presidency term without seeing them through. While Canadians wait for a verdict on the negotiations, damage is still being done to our economy, says Mario Lefebvre, chief economist for Canada at CoStar Group.<\/p>\n
\u201cThe biggest impact has been on investment, and I can understand (that) firms for the past year and a half have been more or less on the sidelines. Because it changes everything in your investment plans whether you\u2019re going to be facing a 40-million-people market, which is Canada, or a 400-million-people market, which is Canada plus the United States,\u201d Lefebvre said in an interview.<\/p>\n
\u201cThat has put our investment on hold, and we desperately need investment.\u201d<\/p>\n
11% of Quebec exports could be affected<\/p>\n
![\"Christine](\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2026\/08\/0814-city-frechette_304694773.jpg\")
Quebec Premier Christine Fr\u00e9chette discusses the economy and tariffs Aug. 13, 2026. Tim Snow \/ Montreal Gazette<\/p>\n
Quebec\u2019s premier also pleaded for an end to the unpredictability.<\/p>\n
\u201cWhat we know is that negotiations are still going on and we need to have all the information before establishing our position,\u201d Premier Christine Fr\u00e9chette told reporters as she arrived for a meeting of the Quebec cabinet Wednesday morning.<\/p>\n
\u201cWhat businesses need is confidence and stability and predictability.\u201d<\/p>\n
The tariffs would have applied to roughly US$20 billion worth of Canadian exports<\/a>. Quebec is among the provinces most vulnerable: Fr\u00e9chette said nearly 11 per cent of the province\u2019s exports could be affected<\/a>, while the F\u00e9d\u00e9ration des chambres de commerce du Qu\u00e9bec (FCCQ) estimates more than $8 billion worth of Quebec goods would be affected by the measures.<\/p>\n The list of affected goods stretches across much of Quebec\u2019s economy, including pulp and paper, packaging, agri-food, machinery and equipment, textiles and furniture. The tariffs also cover dairy<\/a>, alcohol<\/a>, electronics, building materials, clothing, sporting goods, cosmetics and agricultural products.<\/p>\n The tariffs apply to products even if they qualify under the Canada-United States-Mexico Agreement, removing a protection that had shielded many Canadian exporters from earlier tariffs.<\/p>\n \u201cEvery postponement is an opportunity to negotiate further,\u201d Quebec Liberal Leader Charles Milliard said Wednesday. \u201cI think we should view the possibility of reaching an agreement in a positive light.<\/p>\n \u201cWe know that the average tariff rate in Quebec is among the highest, so we\u2019re the ones most affected,\u201d he said. \u201cI expect once again that there be good cooperation between the current Quebec government and the Carney administration on this issue, in a context where everything is a bit unpredictable.\u201d<\/p>\n Gilles Pelletier, the president and general director of the Association des fabricants de meubles du Qu\u00e9bec, which represents furniture manufacturers, said he\u2019s pleased there appears to be \u201ca certain degree of optimism\u201d in terms of a potential deal.<\/p>\n \u201cBut it\u2019s cautious optimism,\u201d he said Wednesday morning.<\/p>\n Pelletier described the pause on tariffs as a \u201cgood demonstration\u201d of the uncertainty businesses have had to face over the past 18 months.<\/p>\n \u201cYou can imagine companies that sent letters to their American customers saying, \u2018OK, I guarantee these prices until Aug. 19, but after that we don\u2019t know,’\u201d he said. \u201cThen they have to write another letter, and now it\u2019s not the 19 anymore, it\u2019s going to be the 22.<\/p>\n \u201cAll of this reflects the uncertainty hanging over the industry. We still don\u2019t know exactly what\u2019s happening with these agreements.\u201d <\/p>\n Pelletier said the uncertainty is having \u201ca devastating impact on people, families, businesses and users.\u201d<\/p>\n \u2018Red lines, not to be crossed\u2019<\/p>\n \u201cWe are asking the federal government to work for a reduction of the tariffs that are being applied and to avoid any new tariffs and make sure there is a review of the agreement we have, in order to give stability to our businesses,\u201d Fr\u00e9chette said Wednesday.<\/p>\n \u201cOur red lines, not to be crossed, are the protection of the supply management mechanism as well as the protection of culture and language. These are our demands, and we are in close contact with the federal government. Every hour or two hours, we\u2019re getting fresh news, but we still don\u2019t have the big picture, and we need that.\u201d<\/p>\n Milliard said Wednesday that he agrees with Fr\u00e9chette on those points, but added: \u201cWhere I take issue with the Coalition Avenir Qu\u00e9bec, however, is its lack of a network and alliances with the rest of Canada, and that works against us in trade negotiations. Having networks of and alliances with the rest of Canada on the trade front is extremely important. And that has been sorely lacking in recent years.\u201d<\/p>\n Prime Minister Mark Carney confirmed on X that the tariff deadline has been pushed until the end of the day on Aug. 21.<\/p>\n \u201cSubstantial progress has been made, although there is important work still to be done,\u201d Carney said.<\/p>\n On Wednesday, Trump declared that \u201cwe\u2019ve come to a deal with Canada,\u201d saying Canadian representatives \u201cgave us the points we had to have\u201d on issues including market access for U.S. agricultural products.<\/p>\n Les Producteurs de Lait du Qu\u00e9bec said it\u2019s too early to determine how Trump\u2019s comments will affect the dairy industry.<\/p>\n \u201cThe American government is saying one thing. The Canadian government is saying another thing, and the Canadian government doesn\u2019t communicate to us at this time,\u201d PLQ spokesperson Fran\u00e7ois Dumontier said in an interview. \u201cIt might change in a few hours or few minutes, but right now we can\u2019t comment and say anything because there\u2019s two stories, so which one is real?\u201d<\/p>\n Some Quebec companies were losing business even before the duties took effect.<\/p>\n \u201cSince President Trump announced the tariffs, we\u2019ve had U.S. customers cancel orders,\u201d FCCQ president and CEO V\u00e9ronique Proulx said Tuesday. \u201cThey don\u2019t want the uncertainty, and they don\u2019t want to have to pay the bill.\u201d<\/p>\n Proulx said some companies that export as much as 75 to 100 per cent of their production to the U.S. have warned the FCCQ they could be forced to close or lay off workers if the tariffs remain in place.<\/p>\n Asked Wednesday if she is concerned about the possibility of future tariffs, Fr\u00e9chette said: \u201cIt\u2019s preoccupying with what\u2019s at risk and at stake. This could bring significant economic changes, and we\u2019ll have plans if it is the case.\u201d<\/p>\n Jesse Feith and Abby McLaughlin of The Gazette, and Bloomberg News, contributed to this report.<\/p>\n On Quebec Politics<\/p>\n The Gazette\u2019s On Quebec Politics newsletter by Andy Riga breaks down key election issues, from polling shifts to legislative manoeuvring to ideas circulating in francophone commentary that don\u2019t make it into English-language coverage.<\/p>\n