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Trump's new 35% tariffs are damaging for Quebec workers and companies, Legault says

Trump's new 35% tariffs are damaging for Quebec workers and companies, Legault says

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QUEBEC — U.S. President Donald Trump's decision to go ahead with 35-per-cent tariffs on Canadian exports will hurt Quebec workers and companies, Premier François Legault said Friday.
Reacting to Trump's decision to sign an executive order to increase tariffs on Canadian goods from 25 per cent to 35 per cent, Legault said Canada and Quebec have no choice but to diversify their economies and increase economic autonomy.
'The tariffs imposed by the Trump administration, which go from 25 per cent to 35 per cent, excluding products covered by our free trade agreement, are damaging to our workers and companies,' Legault said in an early morning posting on social media.
'These tariffs are also harmful to American citizens who need our products and our resources.'
Les tarifs imposés par l'administration Trump, qui passent de 25 à 35 %, excluant les produits couverts par notre entente de libre-échange, sont dommageables pour nos travailleurs et nos entreprises. Ces tarifs nuisent aussi aux citoyens américains qui ont besoin de nos produits…
— François Legault (@francoislegault) August 1, 2025
Unlike Mexico, which got an extension in trade talks, Canada got no such break with tariffs on certain export goods increasing Friday.
In Ottawa, Prime Minister Mark Carney issued a statement on the Trump decision after midnight Thursday.
'While the Canadian government is disappointed by this action, we remain committed to CUSMA (the Canada-U.S.-Mexico Agreement), which is the world's second-largest free trade agreement by trading volume,' the statement said.
'The U.S. application of CUSMA means that the U.S. average tariff rate on Canadian goods remains one of its lowest for all of its trading partners. Other sectors of our economy — including lumber, steel, aluminum and automobiles — are however heavily impacted by U.S. duties and tariffs.'
My statement on Canada-U.S. trade: pic.twitter.com/0PSG9kKtiO
— Mark Carney (@MarkJCarney) August 1, 2025
Carney said the government will act to protect Canadian jobs and invest in industrial competitiveness, buy Canadian and diversify our export markets.
'Canadians will be our own best customers, creating more well-paying careers at home as we strengthen and diversify our trading partners throughout the world.'
Legault takes a similar line, vowing to protect Quebec's interests.
'Recent developments underline the importance of devoting efforts to diversify our markets and increase economic autonomy,' Legault writes. 'We are going to support our workers and our companies.
'We are working with the federal government and other provinces for the rest of things. We have to continue our discussions with the American administration. In any case, we are going defend the interests of Quebecers. '
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Cocoa tariffs crush US firms, boost Canadian chocolate exports
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Cocoa tariffs crush US firms, boost Canadian chocolate exports

LONDON/NEW YORK: U.S. President Donald Trump's tariffs are designed to strengthen domestic manufacturing. But in the chocolate industry, they're having the opposite effect, raising cocoa import costs and making U.S. production less competitive than factories in Canada and Mexico, industry executives and experts say. Thanks to the U.S.-Mexico-Canada Agreement (USMCA), chocolate exported to the U.S. from Canada and Mexico is tariff-free, regardless of where the cocoa is sourced. Meanwhile, U.S. manufacturers must now pay between 10 percent and 25 percent in tariffs on cocoa imports. Those rates could rise to 35 percent starting August 1. Canada has no tariffs on imported cocoa products like butter and powder, and Mexico grows its own beans, giving both countries a cost advantage over U.S.-based factories. Top U.S. chocolate producer Hershey, which has facilities in Canada and Mexico, estimated earlier that tariffs could cost it US$100 million in the second half of this year if they remain in place. The company recently introduced double-digit price hikes on products like Reese's cups, but said the increases were not related to tariffs. Smaller producers are also feeling the pressure. Taza Chocolate, based in Somerville, Massachusetts, had to pay over $24,000 in duties for a single container of cocoa from Haiti. Its next shipment from the Dominican Republic will cost more than $30,000 in tariffs. "For a company our size, that's our profit margin gone," said CEO Alex Whitmore. While he considered moving part of the production to Canada to benefit from USMCA, the investment was too risky in today's uncertain environment. "We're just hunkering down and hoping this will pass," he said. Customs data from Trade Data Monitor shows Canada's chocolate exports to the U.S. rose 10 percent in the first five months of this year. Industry insiders say Canadian and Mexican contract manufacturers are gaining market share, including multinationals like Barry Callebaut, which operates multiple facilities across North America. Barry Callebaut declined to comment, but CEO Peter Feld noted the company's presence in the U.S., Canada, and Mexico "allows us to navigate this environment." Contract chocolate makers supply raw chocolate to U.S. brands, which then add ingredients and market it as American-made. The timing is especially tough for U.S. chocolate makers. Cocoa prices have surged due to poor weather and disease in major producing countries like Ghana and the Ivory Coast. Cocoa accounts for 30 to 50 percent of a chocolate bar's total cost. Hershey said in May that it is lobbying the U.S. government for an exemption on cocoa imports. In Mexico, the chocolate association Aschoco Confimex said American companies have shown growing interest in outsourcing production south of the border. "The sentiment… and requests… to manufacture in Mexico is real and has been increasing," said director general Paolo Quadrini. The U.S. chocolate market is worth $25 to 30 billion. Imports from Canada and Mexico now make up roughly 12.5 percent of that total.

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