New U.S. tariffs: what industry is calling for, and why diversification is becoming urgent

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This summer, new U.S. tariffs added further pressure to supply chains already under strain. Quebec's manufacturing industry responded quickly, with specific demands addressed to governments. As the fall season approaches, here is what the situation is concretely changing for manufacturers.

A sector that carries more weight than we think

In Quebec, manufacturing isn't just one industry among many: it accounts for 12.4% of the province's GDP, 86% of its exports, and more than 500,000 jobs across roughly 13,600 companies, according to Manufacturiers et Exportateurs du Québec (MEQ). When this sector goes through a rough patch, the shockwaves spread across several parts of the economy. This summer was a reminder: new 50% U.S. tariffs on several product categories (construction materials, furniture, paper, electronics, sporting goods) added pressure to supply chains that had already been strained for months.

What MEQ is calling for

Facing the new tariffs, Manufacturiers et Exportateurs du Québec (MEQ) is calling for action on three fronts. First, defending Canadian interests diplomatically and legally in trade negotiations. Second, offering temporary liquidity measures to affected companies, while accelerating the diversification of their export markets. Third, using the crisis as an opportunity to strengthen competitiveness through innovation and reduced regulatory red tape. Its director of public and government affairs, Francis Prévost, put it plainly: “Quebec companies cannot operate in a climate of permanent uncertainty.”

What changes now

For several companies, diversification is no longer just an intention: it's already underway. Relying on a single market, client, or partner has rarely looked riskier than it does right now, and many manufacturers began exploring new markets and building new business partnerships as early as this summer. The CVDM's matchmaking remains a concrete way to keep this momentum going, as the industry heads into fall in a trade climate that remains uncertain.


Photo: Unsplash / Ali Mkumbwa


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