In the latest episode of Trump’s Trade War, The Hub’s publisher Rudyard Griffiths speaks with Daniel Dufort, president and CEO of the Montreal Economic Institute, to discuss Quebec’s shifting position on building pipelines amidst looming tariffs from President Trump.
To read Daniel’s full analysis, click here.
Key points:
- Impact of aluminum tariffs: Trump’s tariffs on aluminum are a significant blow to Quebec’s economy, particularly in regions where the aluminum industry is a major employer. The tariffs also harm U.S. manufacturing, which relies on Quebec’s aluminum.
- Shifting public opinion on pipelines: Public support for pipelines in Quebec has reached a historic high of 74 percent, according to recent polls. However, political leaders have been slow to act, as pipeline opponents tend to be more vocal and organized than supporters.
- Challenges to economic reform: Quebec remains resistant to reducing internal trade barriers, consistently ranking last among provinces in this regard. Dufort cited corporate interests and political inertia as major obstacles to reform.
In the latest episode of Trump’s Trade War, Daniel Dufort, President and CEO of the Montreal Economic Institute (MEI), provided insights into Quebec’s reaction to the looming threat of U.S. tariffs, particularly on aluminum, and the shifting public opinion on pipelines in the province. Dufort’s analysis highlighted the economic and political challenges Quebec faces as it navigates the trade war and explores opportunities for economic reform.
Dufort began by addressing the impact of Trump’s proposed tariffs on Quebec’s economy, particularly its aluminum sector. “This has come as a bit of a shock,” he said, noting that Quebec’s aluminum industry is a cornerstone of its economy, especially in regions where it serves as a major employer. The tariffs, he argued, are not only harmful to Quebec but also to the U.S., as Quebec’s aluminum is a critical input for American manufacturing. “Quebec is a major contributor to America’s manufacturing sector through its steel and aluminum,” Dufort explained, emphasizing the interconnectedness of the two economies.
The conversation then turned to Quebec’s historical stance on trade. Dufort pointed out that Quebec has long been a proponent of free trade, dating back to its strong support for NAFTA and its early push for a trade agreement with Europe. However, the recent tariffs have created a sense of betrayal, particularly given Quebec’s recent energy deal with New York State to export hydroelectric power. “To have tariffs imposed on aluminum, which production requires a lot of hydroelectricity, is solely seen as a slap in the face,” Dufort remarked.
Generative AI assisted in the production of this story. If you are quoting from or referencing this episode, please refer to the audio to verify.
