Future generations’ living standards at risk from Trump tariffs, premier says
Times are tough for Québec and the economy is sliding towards recession, the province’s premier warned late Monday.
In a speech and news conference, François Legault said that Quebecers need to be “told the truth” about how bad things are, noting that the criteria for a recession are “very close” to being met as the province grapples with the impact of Trump’s tariffs.
Among the measures Legault says could help mitigate the choppy waters, is a greater share of local investment from the provincial pension fund Caisse de dépot et placement du Québec. Currently around 20% of its AUM is locally focused, but the premier says that it needs to do more as the “situation is critical” and risks future generations suffering a lower standard of living.
While La Caisse is run independently, Legault plans to monitor its progress and is urging both the pension fund and Hydro-Québec to boost investment in the province and take a more risk-on approach rather than holding back.
Facing election in 2026, Legault told the audience of business leaders gathered in Montreal that “We are going to need all of you to meet the immense challenges that lie ahead of us.”
Legault warned that there could be a rise in unemployment ahead. Responding to calls from businesses to increase immigration levels, he said: “Companies want to have as many workers available as possible so they can pay the lowest wages, but we have to be careful,” stating that the province could be “lacking more jobs than employees.”
The government’s plan for the economy includes making Québec the leading mineral extraction and processing region in North America and seizing the opportunity to help western allies boost their defences through industries including aerospace and technology.
