SAGUENAY, Que. – The impact of U.S. President Donald Trump's proposed tariffs on Canadian goods has become a significant concern in Quebec's Saguenay-Lac-St-Jean region, where the economy heavily relies on aluminum and wood industries. Situated north of Quebec City, the area is characterized by its dense forests and bustling logging activities, with trucks frequently transporting freshly cut logs along snow-covered roads.

In Saguenay-Lac-St-Jean, approximately one-third of Canada's aluminum production occurs, with around 85 percent of that output exported to the United States. This substantial reliance on U.S. markets makes the region vulnerable to fluctuations in trade policy. A recent study conducted by the Canadian Chamber of Commerce highlighted Saguenay and Drummondville as two of the most susceptible Canadian cities to potential U.S. tariffs.

Drummondville, located about 90 kilometers northeast of Montreal, faces a particular risk due to its manufacturing sector, which constitutes nearly 26 percent of its gross domestic product. This percentage is almost double the Quebec average and more than double the Canadian national average, underscoring the city’s significant dependence on manufacturing.

Last week, President Trump temporarily postponed the 25 percent tariffs for Canada and Mexico until April 2, 2025. However, he also announced plans to implement these tariffs on steel and aluminum, further heightening uncertainty for Canadian industries reliant on cross-border trade.

The looming tariffs and their potential impacts are a source of anxiety not only for workers in the aluminum and logging sectors but also for the broader economic landscape in Quebec. With both Saguenay-Lac-St-Jean and Drummondville's economies tightly intertwined with U.S. demand, stakeholders are closely monitoring the developments in trade policy.

This report highlights the precarious balance that regions like Saguenay-Lac-St-Jean and Drummondville must navigate in the face of changing international trade dynamics and the ongoing negotiations surrounding tariffs. As businesses operate on the razor's edge of uncertainty, the future economic stability of these communities hangs in the balance.