Business of Supply

The House debated a Bloc Québécois opposition motion condemning new U.S. tariffs, in force since April 6, 2026, on products containing steel, aluminum and copper, and calling for direct grants, wage support and other help for affected businesses and workers rather than loans. Bloc members said businesses are already too indebted, that tariff revenues should go back to affected sectors, and criticized the government’s focus on pipelines and oil. Liberal members pointed to about $1.5 billion in support through the Business Development Bank and regional agencies, market diversification including a 31% rise in exports to Europe in 2025, and said negotiations with the U.S. need time to reach a good deal. Conservative members said the Prime Minister has not secured a trade deal or a plan as tariffs rise, argued for building pipelines and major projects, and urged direct negotiation with the United States. Some members also raised forestry sector difficulties and conditions in their own ridings.Written by AI from the debate. Updated .

Official text (opens in a new tab)

117 statements

Gabriel Ste-Marie, Joliette—Manawan

Bloc Québécois
“I want the House to condemn new US tariffs on products containing steel, aluminum, and copper. These unfair taxes hurt our manufacturers and threaten jobs. The government must give direct money and wage help to affected businesses and workers right now, instead of just offering them more loans.”
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Official Hansard

moved: That the House: (a) condemn the imposition of new United States tariffs that came into force on April 6, 2026, as contrary to the principles of free trade; (b) note that the application of additional tariffs on the full value of products containing steel, aluminium or copper is affecting a growing number of businesses, particularly SMEs; (c) express concern that this new trade environment will have irreparable effects on our manufacturing sector and the jobs that depend on it; and (d) call on the government to take all necessary measures without delay to mitigate the impact of these unjustified tariffs, including providing direct support to affected businesses and workers in Quebec and Canada, until a trade agreement with the United States is restored. He said: Mr. Speaker, I will be sharing my time with my friend and colleague, the member for Pierre-Boucher—Les Patriotes—Verchères. Since April 6, Washington decided that the rules of the game were too simple, too transparent, almost fair, so it changed the rules without changing the game. Before, it was brutal but clear: 50% tariffs on steel and aluminum. It hurt, but at least we knew where the pain was coming from. Then, it fine-tuned the torture: it looked at how much metal was in a product, then imposed a tax equivalent to that percentage. It was a surgical and cold-blooded method that fit into the logic of a trade war. However, the White House came up with something even better, simpler, and more absurdly elegant: If a product contains at least 15% steel, aluminum, or copper, the quantity or proportion no longer matters—everything is taxed. It is a 25% tax on the entire product, regardless of whether it is a machined part, a snowmobile, or even a folding chair. In short, metals are no longer taxed; the products made from them are. As a result, things that used to be protected no longer are. CUSMA is a distant memory. According to Desjardins, a quarter of our exports to the United States have just veered into penalty territory. Some observers are relying on a University of Calgary study to estimate that as much as 55% of Quebec’s exports could be affected. Perhaps the government should provide a clear picture of the situation, because it is catastrophic. It is urgent that we fully grasp its scope. Some industries are escaping the net, but for the most part, this is a massive expansion of the strike zone. When the target is expanded, it always ends up affecting more people, even those who thought they were too small for Washington to notice. The worst part is that the shock has not even hit yet, because the plants are currently working on orders that were placed months ago. The supply chains are operating, the machines are running and the order books are still full for the time being. However, when American buyers start doing the math, that is when silence will fall, the silence of cancelled orders and unrenewed contracts. A change like this does not make a lot of noise right away. It falls gently, like heavy snow. The closures we are seeing today are not the peak; they are the warm-up. In light of this, we expected a swift, robust, coordinated response. What we got instead was an economic update that seemed to have been written before April 6, as if the situation had changed unexpectedly, which is exactly what happened. Then, yesterday, we finally got a reaction, an update to the update: $1 billion in loans and $500 million for the regional agencies. Is it good news? To a certain extent, maybe, but the announcement fails to really address the emergency that SMEs are dealing with. All the businesses and associations that testified before the committee said the same thing: They do not want assistance in the form of loans. Offering loans to businesses that are already in debt is like offering a second credit card to someone who cannot even pay off their first. The problem is not access to money; it is that money is not coming in anymore. Offering loans of at least $2 million only to SMEs with at least $5 million in revenue will leave tons of SMEs out in the cold. As for the $500 million to help businesses buy new machines, that is great for productivity, but it is not the right response when orders are drying up due to the 25% tariffs. What is the point of buying a new machine when production is down 50%? Meanwhile, the Bloc Québécois has put forward a series of concrete measures. These are not band-aids, but tools to weather the storm, because a storm does not negotiate. Trump’s executive order is not an accident or a blunder. It is a calculated move. There has been a shift from targeted measures to blanket measures. That is exactly the type of foreign intervention that everyone condemns. In reality, we are still watching the wave roll in. The irony of all this is that they continue to call it free trade. When a partner unilaterally changes the rules with barely four days’ notice, penalizing those who have invested in local manufacturing, it is no longer free trade. It is predation with a bill attached. It is illegal. It makes a mockery of CUSMA and it makes a mockery of the executive order, which is itself illegal, to impose a 50% tariff on steel and aluminum. I hope that American companies that are paying all these tariffs will start legal action as soon as possible to overturn these illegal executive orders from their irascible President. What this new regime actually does is quite simple: It does not tax raw metal, the primary material, but rather the labour, engineering, processing and the value added to products right here at home, in our factories in Joliette, Boucherville, Saguenay, Drummondville, Victoriaville and across our regions. The Americans are basically saying, “Thank you for processing our aluminum. Now we are going to tax it twice.” Primary aluminum is still being taxed at 50%, but the processed product is now also taxed at 25%. This is double taxation, a penalty for having done more than simply extract the aluminum. In Quebec, 441,000 people are employed in manufacturing. These are not mere statistics: These are paycheques, mortgage payments and school lunches. We have already seen 9,700 jobs in this sector disappear in just one year because of U.S. tariff policies. In certain industries that depend on the United States, employment has fallen by more than 5%. That was before April 6. Now the net is being cast wider. The news is reporting multiple business closures every week. Companies that process, assemble and innovate are caught in a double bind. They themselves have become subject to tariffs and must prove, document and itemize every gram of metal. Every error becomes a risk, and every form is an obstacle. In this situation, U.S. buyers do what anyone else would: They call local suppliers. Even if it is more expensive, it is made cheaper because of the new tariffs. There is less paperwork, less risk, fewer tariffs and less of Quebec. According to last week’s economic update, tariffs are the new normal. That remains to be seen. Things may change this summer, or perhaps this fall with the mid-term elections. However, acknowledging the situation without taking action is a bit like announcing that it is raining without getting out the umbrellas. The update does not contain any targeted measures. Worse still, the Liberals are patting themselves on the back for having collected $10 billion in tariffs and distributing just over half of that amount. The rest is on hold while SMEs are closing their doors. Therein lies the contradiction: The government has the means, but not the will. In an ideal or at least a functional world, the government would act on two fronts: It would protect and support. It would protect the sector with safeguard tariffs against dumping and unfair imports from Asia. It would adopt buy local policies, and it would not be content to simply make a commitment in that regard; it would pass a law. The government would also buy back countervailing duties for sectors like softwood lumber. It would provide support through a targeted one-time wage subsidy to enable businesses to keep workers employed and retain their expertise. The government would set up a one-stop shop to prevent SMEs from getting lost in a sea of executive orders. It would provide direct liquidity measures, rather than disguised debt, and it would simplify the duty drawback process. Wage subsidies are not just some crazy idea. The government implemented them during the pandemic and they worked. In times of crisis, the worst thing a government can do is make cuts. Cutting jobs means losing expertise, and that is not something that can be recouped in a few months. The majority of SMEs that export their products rely on welders, machinists and operators—trades that are experiencing a labour shortage. If SMEs lose these workers, they will not be able to find them again. Right now, SMEs are staring down the barrel of a gun: They can continue to pay these workers even though their order books are empty, or they can lose them. However, if they lose their workers, they will not be able to meet demand when their order books start to fill up again because the employees will be gone. The government is offering to lend these businesses money. That means they can take on debt if they wish to continue paying their employees in the meantime. They can also take on debt to buy a new machine, and the government will pay part of the cost. Meanwhile, the government is trying to sell us on a $25‑billion fund, a $25‑billion debt fund that will put the country deeper into debt and will most likely be used to support energy projects. This is essentially a philosophical debate. Would the government rather invest in hypothetical pipelines or in very real workers who have just lost their jobs? Just a fraction of that $25 billion could stabilize entire regions. We do not see that on a long-term graph. We see it when a factory does not shut its doors. U.S. tariffs may be a blip, but they may be more than a temporary irritant. Time will tell. What we do know is that this is now the new normal. When a situation changes, the response must also change—not in six months, not in the next budget, but now. While we are here debating structures, programs, and mechanisms, somewhere, a small business is looking at its order book and realizing that the phone has stopped ringing. This debate is not about economics. This is about when someone comes to the stark realization that everything has just changed.

Kevin Lamoureux, Parliamentary Secretary to the Leader of the Government in the House of Commons

Liberal
“Donald Trump's tariffs and trade actions hurt Canadian industries. Our government is supporting these workers and protecting their jobs.”
Official Hansard

Mr. Speaker, I think it is important to make it very clear, when we talk about these industries, that we have a Prime Minister who has been in the chair for a year. We understand the impact on these industries. That is the why we want to make sure that, for the workers in those industries that are so vulnerable, the Prime Minister, the government and all Liberal members of Parliament are going to have their backs. That is why we are providing the type of supports that are necessary. We recognize the impact that President Trump, the tariffs and trade issues are having on Canada. It is very real. It is tangible, which is why the Government of Canada is taking the actions necessary to protect those jobs. We believe in those workers. They are the best in the world. Would the member not agree with those comments?

Gabriel Ste-Marie, Joliette—Manawan

Bloc Québécois
“The government was not ready for the American executive order. Its plan only offers loans, which will not help small businesses that already have too much debt. We want to work together to change this program and give businesses real help.”
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Mr. Speaker, I am disappointed that the executive order seemed to catch the government off guard. Our leader asked the Prime Minister about it, and the Prime Minister was not aware of it. The following week, he said that yes, the government was aware of it and that the economic update would provide a response. The economic update talked about this executive order but offered no solutions. At the start of the week, the government came up with a solution that essentially consisted of loans that will not even be available to the smaller SMEs. SME organizations and representatives appeared in committee to ask us to help them by means other than loans, because they already have too much debt and they could not last until July with this kind of support. Yes, a verbal understanding was reached, but in fact, on the ground, in practical terms, this is not what we are seeing. That is why we want to co-operate. We are making suggestions. Yesterday, two ministers said that they were open to adjusting the program. We hope that will prove to be the case.

Tamara Jansen, Cloverdale—Langley City

Conservative
“American tariffs are hurting Canadian workers, and government loans will not fix this. Does the member agree that Canada needs real leverage, like expanding our energy sector, to get the U.S. to drop the tariffs?”
Official Hansard

Mr. Speaker, we all agree that U.S. tariffs are hurting Canadian workers. Businesses are being squeezed and uncertainty is growing, but loans are not a solution. Even industry leaders are clearly saying that the tariff is the problem. I would ask my colleague from the Bloc, if tariffs are the problem, does he agree that Canada needs real leverage, like building our energy resource capacity, to get those tariffs removed?

Gabriel Ste-Marie, Joliette—Manawan

Bloc Québécois
“Building a pipeline will not stop Trump's tariffs. The government wants to spend 25 billion dollars on pipelines. Instead, we should use that money to help local businesses that might close because of the 25 percent tariffs.”
Official Hansard

Mr. Speaker, just because we build a pipeline does not mean that Trump will lift his tariffs. What I said in my speech is that the government is creating a $25-billion sovereign debt fund specifically to build pipelines. What we are saying is that, before building pipelines, we need to save the businesses and small and medium-sized enterprises located throughout the regions across the country—many of them in Quebec—that are at risk of closing. With 25% tariffs, they are no longer able to sell their products. Their order books are drying up, even though these are often companies that have been around for decades. What we are saying today is that we need to help these companies weather the current crisis so that they can continue operating in the future. That is the priority.

Alexis Brunelle-Duceppe, Lac-Saint-Jean

Bloc Québécois
“The government promised to end the tariff crisis quickly, but it has only gotten worse. It also refuses to listen to our good solutions. I want to ask my colleague what he thinks about this.”
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Mr. Speaker, I believe my colleague just demonstrated that we are putting forward proposals that come from the front lines, and that there is no reason why this government should not listen to them and implement them. There is one thing I would like to ask my colleague. It seems to me that almost exactly a year ago, this government was elected on the sole promise of ending the tariff war by June at the latest. It then pushed that deadline back to July, and then to September. A year later, the government has not only failed to resolve the tariff crisis, which has only grown worse, but it also refuses to listen to the opposition parties, who are proposing good-faith solutions. I would like my colleague to share his thoughts on this matter.

Gabriel Ste-Marie, Joliette—Manawan

Bloc Québécois
“The Liberals made a promise they cannot keep because the American president will not end the trade fight. Businesses face 25 percent tariffs right now. The government's long-term plans take too long. We need to give businesses wage subsidies right now so they do not lose skilled workers.”
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Mr. Speaker, that is a Liberal promise that appeals to those who want to believe it. It is impossible to resolve a conflict when the U.S. President does not want to resolve it and wants to make it worse. That means it was a false promise. Given the current tariffs, what we need is to support businesses. What the government does not seem to grasp is the gravity of the situation in the short term. It is creating measures to increase productivity, to compensate for the 25% tariffs, but that takes years to implement, whereas the crisis is a matter of weeks or months. Businesses need short-term support to keep their skilled workers, whom they are at risk of losing, such as welders, machinists and operators. They have to be able to get through the crisis. Can this be resolved in July or in the fall with the mid-term elections? We do not know, but we have to help businesses make it to that point. The wage subsidy is an excellent way to do so without increasing the debt of small and medium-sized businesses, all while maintaining the employment relationship.

Xavier Barsalou-Duval, Pierre-Boucher—Les Patriotes—Verchères

Bloc Québécois
“The Prime Minister promised to end U.S. tariffs, but the problem is getting worse. The Americans added more tariffs on steel and aluminum, and the Prime Minister did not even know about the changes.”
Official Hansard

Mr. Speaker, an election was held about a year ago. A saviour came along and told everyone that he had all the right skills to solve the problem we were facing at the time because of the new, scary U.S. President and that he could get rid of the tariffs. Everyone would see that all the problems would be resolved in a matter of weeks, as if by magic. People wanted to believe in the fairy tale. Here we are a year later, still in exactly the same place, waiting for the situation to be resolved. Not only has the situation not been resolved, but it is getting worse. While people’s concerns about the current situation are entirely understandable, everyone also understands why businesses and workers are growing increasingly impatient and dissatisfied that the situation is not being resolved. To say that these folks are dissatisfied is really an understatement. People are beginning to realize that this government was elected to solve a problem that it is not solving, choosing to focus on all kinds of other things instead. What is more, the situation is getting even worse. What happened on April 6? The Americans decided to rub salt in the wound. Instead of imposing tariffs of just 50% on the raw material or on the raw material component in the product, and to simplify the calculation, the Americans decided that if the product contained more than 15% steel or aluminum, they would apply a 25% tariff, period. As everyone can imagine, this is hurting a lot of people. As angry as we may want to be at the United States, we have no control over the United States. We do, however, have control over what we do. Unfortunately, when we elect someone to be in charge, we would expect a response from them. The most frustrating thing is that when our leader, the member for Beloeil—Chambly, asked the Prime Minister the question during question period on a Wednesday, and I should point out that it is rare for the Prime Minister to be there on Wednesdays, the Prime Minister was not even aware of the change in—

Xavier Barsalou-Duval, Pierre-Boucher—Les Patriotes—Verchères

Bloc Québécois
“The Prime Minister is failing to help the steel industry deal with American tariffs. Quebec produces one fifth of Canada's steel, but the government only focuses on Ontario while Quebec plants close and workers lose jobs. The government must do more to support Quebec steel and make sure Canadian builders buy Canadian steel.”
Official Hansard

Mr. Speaker, I appreciate the reminder. I was just pointing out that I would like to see the Prime Minister in the House much more often. I am sure that this perspective is shared by many in the House. What I wanted to focus on is that the Prime Minister was not even aware that there had been a change in U.S. tariffs. Our leader asked him the question not the morning after or the same day but in fact about two weeks after the change was made through an executive order, and he still was not aware of it. There is something wrong with that picture. Something is not right. When people elect a representative to do something and that person does not do it, the people have every right to be angry and frustrated. When the Prime Minister was asked again about this issue, he said not to worry, that the government was going to fix it, or at least try to. He said that the government was going to announce new measures in the upcoming economic statement and resolve the situation. However, there was absolutely nothing in the economic update. There was not a single line, not a single sentence, nothing to suggest that there would be support measures or adjustments to government programs in response to the U.S. tariff changes. It is frustrating to see this kind of situation unfold. First, the Prime Minister was elected to resolve the situation. Second, he was warned that there was a problem and he was unaware of it. Third, he made a promise that he has decided not to keep. Faced with this completely absurd situation we find ourselves in, the government finally made an impromptu announcement yesterday, and the industry minister said there would be loans for companies. Ultimately, that was the announcement. It is rather disappointing when a government gets elected by saying that the economy and our relationship with the United States will be its priority, but then it becomes clear, in the end, that that is not its priority. We would like to know what it is actually working on. This situation has a major impact on Quebec. I am a member from Quebec. Among other things, there is a steel mill in my riding. According to Desjardins, 24% of Quebec exports would be affected by the changes, and 24% is a lot. For months, the government has been telling us that we did not need to worry about the tariff crisis, that we had the best deal in the world with the United States and that it was ultimately better to do nothing. However, the government is realizing that with the regulatory change that has been ordered, we are going from an average effective rate of 5.7% to 9.6%. Roughly speaking, our situation has just gotten about twice as bad. Businesses are going to suffer. They already were suffering; that is the worst part. I am sad to say that when people talk about steel, they often forget about Quebec. They only ever think about Ontario steel. Ministers always hold their press conferences in Hamilton, Ontario. Quebec might as well not exist. I have some news for this House: Many processed and manufactured products contain steel. Many processed and manufactured products contain aluminum. What is more, Quebec produces 20% of Canada’s steel and represents about 20% of the population. We are doing our fair share, so we expect to receive our fair share of the attention and programs when there are government initiatives regarding steel. The government should stop favouring Ontario all the time. Quebec steel is suffering right now. Are my colleagues aware that 200 employees lost their jobs at the metal powder plant in Sorel‑Tracy last year? That is 200 fewer people working in the steel industry. That is a lot of people. Are my colleagues aware that 90 people lost their jobs when the La Perle foundry in Saint‑Ours closed down? Why did the foundry close down and why was it having such a hard time? One of the reasons was the U.S. tariffs. I am talking about Sorel‑Tracy and Saint‑Ours, which are right next door to where I am, a stone’s throw away from my riding. There is also a steel mill in Contrecoeur, where more than 1,500 people work in the sector. People are telling us that. Workers call me and we talk to them regularly. We also talk to company representatives quite often. What we are being told is that the numbers are down. There are no more overtime hours. Machine maintenance is being spread out. Fewer trainees are being hired. Vacations are being stretched out. They are finding all sorts of ways to stretch out contracts because things are not going well right now. Last year, morale was still high, because this crisis was seen as temporary, and the thought was that there would be negotiations and that the magician on the other side of the House would sort it all out. This year, I would say that people are finding the situation a lot more serious. They are starting to lose hope, because the crisis is not going away, and there is a sense that the government is not taking the situation seriously. The longer the problem drags on, the more the situation will become permanent and the faster job losses will be felt, because people will eventually realize that this situation might not be temporary, but permanent. What is unfortunate is that there are things that the government could have done and could already be doing to resolve the situation, without even having to resolve the tariff crisis with the United States. It is hard to understand why they are not doing it. It cannot be said that there has been no action at all. There were in fact a few limited actions taken in 2024 to reduce import volumes and set quotas. The problem is that the import volumes were already so high that this did not really change much. It mainly affected our market share. Canadian steel consumption is equivalent to what is produced in Canada: We produce roughly 100 million tonnes of steel and consume roughly 100 million tonnes. The problem is that 50% of what is being produced is going to the United States. That was already the case even before the tariff crisis. If we have just lost 50% of our exports, our hope is that we will not lay off 50% of people, that 50% of jobs are not going to disappear and that 50% of mills are not going to close. We have to react and take measures to control our market, since that is what we can control. If we are producing 100 million tonnes of steel and consuming 100 million tonnes, why are we not guaranteed a larger share of the domestic market? The reality is that before the tariff crisis, we held about 35% of the market. Now, it is about 40%. There is still a lot of room, but, in the meantime, the federal government is unfortunately not resolving the issue. For example, there are cases of Chinese dumping still taking place, and the reciprocal tariffs on American steel have been completely dropped. That means that we are affected by tariffs, but the Americans are not when they come here. Another problem has to do with the fact that, in November, the government promised a subsidy system for rail transportation from coast to coast to coast. There are still no conditions. It is still unclear how it will work. The government announced it in November and it is now May. Businesses and workers are tapping their feet. They have no idea what the conditions will be. What is more, marine shipping is excluded. Quebec businesses will suffer as a result, because there is a kind of unfair competition in the system. That is the federal government we have. We are not impressed.

Karim Bardeesy, Parliamentary Secretary to the Minister of Industry

Liberal
“The government just put a lot of money into the port of Contrecoeur. I want to know if this money will help the Quebec businesses the member talked about.”
Official Hansard

Mr. Speaker, I really enjoyed my colleague’s speech and that of my colleague from Joliette—Manawan . My colleague talked about Quebec businesses. As a member from Ontario and parliamentary secretary, I am more concerned with businesses in Ontario, but I know that the minister and my colleague, the parliamentary secretary and member for Marc-Aurèle-Fortin, are very involved with Quebec businesses. I also appreciate my colleague’s comments on specific businesses. My colleague from Joliette—Manawan and I heard about them at the Standing Committee on Industry and Technology. Now, I have a question for him. We know that the government has just made major investments in the port of Contrecoeur. Will these investments help the companies he is talking about?

Xavier Barsalou-Duval, Pierre-Boucher—Les Patriotes—Verchères

Bloc Québécois
“The government needs to focus on protecting local jobs. It promised to buy Canadian, but it keeps giving billion-dollar contracts to foreign companies instead of supporting our own workers.”
Official Hansard

Mr. Speaker, I do not see any connection between his question and the issue we are discussing today. It is a shame, because we are in a difficult situation where people are worried about their jobs, and the government is trying to distract us by bringing up other topics. I would urge my colleague to focus instead on the problem we have brought to the table today and to talk to his colleagues so we can resolve this. Let us take the “buy Canadian” policy as an example. Before Christmas, the government promised to make buying Canadian a priority. What happened in the end? A few weeks later, the government could have bought Canadian steel to build future ferries in the Vancouver area, but instead decided to give that contract to the Chinese. That is $1 billion going to China. We could also talk about the renewal of Via Rail’s fleet. A contract is coming up. Will it be awarded to Alstom, or will it go to Siemens again, like last time, when the Americans were given $1 billion to build it? It is important to choose to keep our people employed rather than constantly sending money abroad.

Kurt Holman, London—Fanshawe

Conservative
“Canada needs to develop its energy and minerals so we have more power when we deal with the United States. Factories in my area are hurting from American tariffs, and the Prime Minister has failed to fix this problem. I want the Bloc member to speak more about these tariffs.”
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Official Hansard

Mr. Speaker, if Canada wants to deal with the United States, we need leverage. Our leverage comes from our strengths, our energy, our critical minerals and our ability to supply the inputs that North American industry depends on. Conservatives believe we should be building that strength, developing our resources, expanding our capacity and creating the conditions for investment so that Canada can negotiate from a position of power, not weakness. I know that the riding I represent, London—Fanshawe, has a manufacturing sector that has had to deal with the U.S. tariffs. Repeatedly, the Prime Minister has said that by a certain date, he would deal with U.S. tariffs, especially last July, and then on repeated dates. I am wondering if the member from the Bloc can expand on the continuing issue of the tariffs that we have to deal with today.

Xavier Barsalou-Duval, Pierre-Boucher—Les Patriotes—Verchères

Bloc Québécois
“We should not turn to the oil industry to deal with tariffs. Quebec's strength is green energy and low-carbon steel made with clean electricity. The federal government should support cleaner steel by taxing high-carbon imports at the border and picking greener bids for big projects.”
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Mr. Speaker, I think it is a shame that my colleague is asking me this question, even though I think it came from a place of good intentions. I do not think it is a solution to say that, because of the tariffs, we are going to abandon all our economic sectors and throw ourselves headfirst into the oil industry. That is not Quebec’s strength. Quebec wants to move toward the energy transition. Our strength lies in reducing greenhouse gas emissions from steel production. The federal government should take that into account with, for example, a border carbon adjustment. It should consider the carbon footprint when evaluating bids for major projects. The reality is that Quebec steel is made with hydroelectricity. It is about a hundred times less polluting than all the steel that exists elsewhere on the planet. It cannot be compared to what is being done in countries like China, where they use coal. That could be a great strategy from the government: to really accelerate the energy transition in order to have greener infrastructure and support our steel sector.

Gabriel Ste-Marie, Joliette—Manawan

Bloc Québécois
“Small and medium businesses drive Quebec's economy and create jobs by selling goods to the United States. How do the new American tariffs threaten them, and why has the government's response been too weak?”
Official Hansard

Mr. Speaker, I would like to begin by congratulating my colleague on his excellent speech and his answers. Can he tell us how important SMEs are to Quebec’s economy? Jacques Parizeau said that Quebec’s economy relies mainly on regional SMEs. The reason there are so many jobs in all medium-sized cities across Quebec is often thanks to metallurgical SMEs that often focus on exports to the United States. Can my colleague tell us how the current tariffs announced in the latest executive order threaten these businesses? Can he tell us why the government’s response so far has been inadequate?

Xavier Barsalou-Duval, Pierre-Boucher—Les Patriotes—Verchères

Bloc Québécois
“New tariff rules are hurting a steel mill in my riding. Other companies are stopping their orders of Canadian steel.”
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Official Hansard

Mr. Speaker, there is actually a mill in my riding that produces steel that could be termed first-level steel. It is not highly refined; it is minimally processed. Afterward, other manufacturing companies will refine it further, especially for export. The problem we are currently experiencing with the new tariff changes is that the steel-processing companies will no longer order steel from major Canadian steel mills. If all these SMEs are no longer ordering—

Carlos Leitão, Parliamentary Secretary to the Minister of Industry

Liberal
“New American tariffs on steel, aluminum, and copper are hurting Canadian businesses. The government is offering $1 billion in loans to help these companies survive, adapt, and find new markets. We are taking the time needed to negotiate the right deal with the U.S. instead of rushing into a bad one.”
Official Hansard

Mr. Speaker, I am pleased to take part in the debate on the Bloc Québécois motion concerning U.S. tariffs on Canadian aluminum, steel and copper. We are at a critical juncture for Canada’s future. Canada’s thriving steel and aluminum industries are facing unprecedented tariffs. The adjustments made by the U.S. on April 6, 2026, to its tariffs on products containing steel, aluminum or copper risk undermining our advanced industrial capacity and our critical supply chains across Canada, and particularly in Quebec and Ontario. The revised tariff measures have significantly increased the burden on many manufacturers by applying duties to the total value of the product rather than just its metal content. The impact of these changes will likely be felt more strongly in products where metal makes up a significant part of the weight relative to the value of the good. Companies operating in Canada-U.S. integrated manufacturing networks will be the hardest hit, particularly when contracts are fixed, margins are thin, and short-term adjustments are difficult, if not impossible, to make. In these situations, the tariff burden will rise sharply and put immediate pressure on business viability. Many of the affected companies are now facing an immediate cash flow problem and cannot adapt quickly enough to absorb these costs. In fact, I believe that this tariff rate makes it nearly impossible for these companies to absorb these costs. The potential impact of these changes is not limited to direct producers of metals or metal derivatives. A wide variety of products are affected, and they are part of the broader industrial supply chains within critical Canadian manufacturing activities. This potential disruption could have a substantially negative impact on the Canadian economy. I quite like the expression used by my colleague, the member for Joliette—Manawan, who said that U.S. tariff policy has shifted from targeted measures to blanket measures. I think that is where we are now. Consequently, the Government of Canada is working with urgency to transform our strategic industries so they can adapt, compete and win in this new global environment. To this end, the government has launched a $1-billion support program for industries that manufacture and export products containing steel, aluminum or copper. Administered directly by the Business Development Bank of Canada, or BDC, the program will offer loans to affected businesses that make significant use of these metals in their production. The BDC program will therefore provide financing at favourable terms to allow businesses to address immediate pressures. The bank will also offer the industry a new tool to transform and adapt to future market conditions and opportunities. The BDC will offer working capital loans scaled to fit the size of businesses and their needs, from $2 million up to $50 million, with repayment conditions at preferential rates over 36 months. It is important to remember that, for the first year, there will be no obligation to repay the loan. Repayment will not start until after that. In addition, there will be no interest for the first three years; interest will start after that. Interest rates are at preferential rates. The BDC will focus on businesses that were viable prior to direct exposure to tariff measures in order to give them financial breathing room to weather the temporary cash crunch. The government expects Canada’s financial institutions to continue to work with the businesses as we lean in collectively to support this sector. This new program aligns with the government’s priority to provide rapid liquidity to viable businesses facing significant economic challenges as a result of these U.S. tariffs. These tariffs are unjustified, arbitrary and ultimately counterproductive for the Americans themselves, but that is a whole other story. We are taking concrete action to strengthen Canada’s economy by standing behind our steel, aluminum and copper industries. The new measures announced yesterday will protect workers and ensure companies have the tools and financing they need to keep operating, growing, and strengthening all the businesses in Canada. They will also keep production lines running and help our businesses transform and modernize in response to future market conditions. Canadian steel, aluminum and copper manufacturers are resilient. Our workers are qualified and well trained. Our businesses are ready to compete on the world stage with the right support. Through these investments, the Government of Canada is standing shoulder to shoulder with Canadian businesses and workers. This is not just a response. It is an integral part of Canada’s economic industrial strategy. In the short term, we will be providing liquidity to support and stabilize our businesses. In the medium term, we will be helping them adapt and pivot to be more competitive internationally. I would now like to take a moment to briefly review what we are already doing. We offer not only emergency assistance, but also the resources and policies needed to support businesses so they can look beyond their current operations, diversify, and explore other markets. Last year, on Montreal’s south shore, GE Vernova in Sorel received government support to secure public contracts for its very large turbines used for electricity generation. This is a very concrete example of how the Canadian government can support innovative companies that are gaining an increasing share of the Canadian market. Not far from there, the Hitachi Energy plant in Varennes also received government support to not only modernize but also ramp up production of its very large transformers, which are also vital to our power grid. We help and support Canadian and Quebec businesses that want to expand, compete in new markets and gain a larger market share. In this vein, the expansion of the Port of Montreal in Contrecoeur will gain significant momentum. Moreover, the construction of the port itself will create jobs in the region. Once construction is complete, the increased capacity of the Port of Montreal will open up opportunities for other Canadian and Quebec-based companies, especially those located near Contrecoeur, to gain faster access to foreign markets, particularly European markets. Getting back to our Bloc Québécois colleagues’ motion, let us look at the first point: That the House condemn the imposition of new United States tariffs that came into force on April 6, 2026, as contrary to the principles of free trade. I am sure we all agree on that. By definition, tariffs are contrary to the principles of free trade. Here is the second point: That the House note that the application of additional tariffs on the full value of products containing steel, aluminum or copper is affecting a growing number of businesses, particularly SMEs. That is the crux of the issue because a lot of SMEs in Quebec and Ontario specialize in products made with metal precisely because we have primary steel and primary aluminum. They redeveloped the existing metal product manufacturing sector, which was meeting with great success in the North American supply chain. I will now address the third part of the motion, which we view as a bit problematic. It proposes that the House express concern that this new trade environment will have irreparable effects on the manufacturing sector. Yes, this will have a very serious impact, but I hope we will be able to respond in time to support the industry as it seeks new markets and I hope we can avoid irreparable effects. The manufacturing sector has proven itself to be very resilient. Obviously, the government has a role to play. The Government of Canada has a role to play, as do the governments of Quebec, Ontario and the other provinces, so that we can continue to support businesses in their efforts to diversify. I truly believe that this will pay off in the medium term. We keep hearing that the situation with the United States not having been resolved yet is a failure on our part. I would like to remind our colleagues that many other countries, including European countries, rushed to sign agreements with the United States. What happened? New tariffs were tacked on European automobiles just last week. The EU thought it had an agreement with the United States, but no, apparently not. In the EU, it is raining new tariffs. That is why we have been saying for so long that a bad agreement is worse than no agreement at all. That is why we are going to take whatever time is necessary, and no more, to reach the best possible agreement with the U.S., because the goal is to get rid of these tariffs and retain access to the U.S. market. However, we are not going to do so at any cost. We have our limits, after all. Although we are not going to discuss these limits publicly—that would be counterproductive—there are some things we will not do. Over the longer term, we must relentlessly build a stronger domestic market and penetrate new foreign markets. Canada is not backing down. Together, we are meeting every challenge not out of fear, but to take action, show resilience and demonstrate optimism.

Xavier Barsalou-Duval, Pierre-Boucher—Les Patriotes—Verchères

Bloc Québécois
“Canada collected 10 billion dollars from retaliatory tariffs, but gave only 5.7 billion dollars back to businesses. Why is the government offering only loans instead of listening to the industry? Why did the economic update ignore this crisis and the help steel businesses need?”
Official Hansard

Mr. Speaker, I commend my colleague on his speech. I would like to ask him a question, because he did not touch on something that I believe is important. In 2025-26, Canada collected $10 billion through retaliatory tariffs. However, the portion that was redistributed to businesses amounts to just $5.7 billion. That means that Canada has collected twice as much money as it has distributed to businesses through support measures. In these circumstances, how does my colleague explain the fact that the government is not listening to the industry more and that all the government has to offer is loans? How does he explain the fact that the economic update did not even mention the tariff crisis or the assistance needed for businesses that use steel?

Carlos Leitão, Parliamentary Secretary to the Minister of Industry

Liberal
“We are supporting businesses with more than just loans. Right now, we are providing emergency help. For the future, we are working to help businesses find and enter new markets.”
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Official Hansard

Mr. Speaker, there is a wide range of support measures for the various industries. We are not just talking about loans. Many other measures have been put in place since last summer, and we will continue that work. We are working on two parallel tracks. For now, we are working on emergency measures, but, in the medium term, we are also working on more structural measures to diversify markets and capture new ones.

Vincent Ho, Richmond Hill South

Conservative
“The Prime Minister keeps changing his approach to the United States. Meanwhile, tariffs on steel, lumber, and manufacturing are hurting Canadian workers. There is still no trade deal after more than a year. I want the government to admit that the Prime Minister has no real plan.”
Official Hansard

Mr. Speaker, the Liberal Prime Minister calls himself the master negotiator, yet he changes his tone on the U.S. faster than the weather changes in April. One day he is talking about a rupture, the next day about a mutual success, then a weakness, and now, being stronger together. Steel tariffs have doubled, lumber tariffs have tripled, and manufacturing tariffs are hitting our workers here at home. However, after all the Liberal rhetoric and illusions, there is still no trade deal after more than a year. At what point are the Liberals going to stop excusing their own failures and admit that the Prime Minister does not have a coherent negotiation strategy at all, that it is just illusions dressed up as diplomacy?

Carlos Leitão, Parliamentary Secretary to the Minister of Industry

Liberal
“I completely disagree with the member. The Prime Minister has said that the world has changed and that a bad deal is worse than no deal. We still stand by that.”
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Official Hansard

Mr. Speaker, obviously I disagree totally with what our colleague just mentioned. In fact right from the start, from the election campaign, our Prime Minister has said, and we repeat it very often, that this was a rupture and that the world as we knew it would no longer be the same. We also kept on saying that a bad deal would be worse than no deal. We stand by those principles.

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