Canada: Quebec to offer loans to steel and aluminium companies hit by U.S. tariffs

U.S steel and aluminium tariffs' impact on metals, said Quebec's Economy Minister Dominique Anglade, was felt more keenly than when US announced tariffs on softwood lumber in 2017.

Although U.S steel and aluminium tariffs's direct impact on the economy would reportedly be limited, it is the unpredictability of U.S. President Donald Trump's trade policy that was of great concern.

Anglade told reporters in Montreal that the program was introduced after aluminium and steel companies received feedback from clients who were not willing to pay the tariffs.

“What they’re telling us is some of their contracts were canceled,” she said, adding some had already slowed down production.

This fact may reportedly lead many Canadian companies across the country to reconsider their investment plans .

“The value of the impact is hard to assess,” Anglade added. “We’re seeing something that we haven’t seen in softwood lumber.” 

After the first step of offering $100 million, the government would reportedly hold another meeting next week with stakeholders to reassess the situation.

Quebec government wants to protect 30,000 workers, currently employed by Quebec's steel and aluminium industries, from any layoffs, Anglade said.

"What's going to be really important is to stay agile and be connected to what the companies are telling us," she said.

"We want to protect the interests of the workers, as well."

(Reporting by Asha Bajaj)