Quebec's aluminum industry shaken despite temporary relief from Trump's tariffs

Quebec business groups are sounding the alarm that Canada's temporary exemptionfromtariffsfor its aluminum and steel exports to the United States isn't enoughto ease their concerns caused by the climate ofuncertainty.

President Donald Trump announced tariffs of 25 per cent on imported steel and 10 per cent on aluminum Thursday. Both come into effect in 15 days.

Canada, as well as Mexico,won't be included in the initial round of tariffs.

"We are relieved because the threat was enormous," said Yves-Thomas Dorval, the president of Conseil du patronat du Qubec, a major employers group that promotes business interests inQuebec.

However, there's no guarantee thatthe exemption will last forever.

The tariff announcementcomes as the U.S., Canada and Mexico continue to renegotiate the 24-year-old North American Free Trade Agreement.

"There are strings attached to this decision, and it is the NAFTA negotiations,"Dorvalsaid.

Quebec's federation of chambers of commerce (FCCQ)released a statement saying it is "incomprehensible" that uncertainty about tariffs persists for its members.

"These new surcharges announced today by the U.S. administration are unjustified and pose a threat to the economy of Canada and the United States itself," saidStphane Forget, FCCQ president.

• Canada and Mexico to be exempt from U.S. tariffs on steel and aluminum

Pressure onNAFTA talks

With the current setup, the U.S. president is taking the positionthat if the U.S.doesn't get the concessions it wants from NAFTA talks, Canadian metal producers could soon find themselves subject to the same punitive tariff as everyone else.

"We're going to hold off the tariff on those two countries to see whether we can make the deal on NAFTA," Trump said.

Canada supplies more than a sixth of all the steel that the U.S. uses and more than 40 per cent of its aluminum.

The industry was in a tizzy at the threat of tariffsas Economic Development MinisterNavdeepBainstried to calm businessleaders at a meeting in Montreal Thursday.

Bainssaidapplying the tariffs would ultimately not be in the best interest of the U.S.

"If you look at any tariff, it will have a negative impact on U.S. jobs and also on U.S. producers," he said, prior to the announcement.

• Trudeau says Liberals 'on the right track' with Trump as Canada eyes steel tariff exemption

Major industry in Quebec

With that as a bargaining chip,Prime Minister Justin Trudeau said he has a "level of confidence" that Canada will secure an exemption but that he will take it "one step at a time," since he's dealing with an unpredictable U.S. administration.

Next week,Trudeau will tour regions of Canadathat are heavily reliant on the steeland aluminum industries in a show of solidarity for those who would be hurtmost by stiff U.S. tariffs.

Marie Lapointe, the head of the AluQuebec,said manufacturers in the U.S. like General Motors, Ford and Toyota rely on Quebec suppliers to meet their aluminum needs.

Uncertainty surrounds whether the tariffs will ultimately impact Canada, but for now, workers are bracing for the worst.

"They are taking this really seriously, but they wish it was a bad dream,"Lapointesaid before the tariffs were announced.

Trump has said the tariffs are needed to reinforce lagging American steel and aluminum industries and protect national security.