Although U.S. President Donald Trump has announced a 30-day reprieve from tariffs against Canada, the situation remains worrisome for entrepreneurs in the Vaudreuil-Soulanges region. Joanne Brunet, General Manager of Développement Vaudreuil-Soulanges (DEV), analyzes the issues and opportunities raised by this measure.

“The word 'reprieve' is well chosen. The president is managing trade relations like a reality show. The weekend's electroshock will enable us to better focus on our actions. We can no longer think of the North American economy as we did in the 1930s. We must no longer be exclusively dependent on the United States. We have an opportunity to develop ties with Europe and Mexico, and we must seize it,” she asserts in a telephone interview with Néomédia.

Direct impact on local businesses

According to Brunet, the U.S. president's approach is brutal and unprecedented, but it didn't take DEV by surprise, considering that he had clearly expressed his intention to impose the tariffs on Canada. In the last few weeks, DEV had already begun to prepare by identifying the companies in the territory affected by these measures.

“We have 450 companies in the manufacturing, transportation and wholesale sectors, including wholesalers and distributors. Of these, we know that 150 will be directly affected by the tariffs. But there are certainly others. In all, this represents some 3,000 jobs in the region,” explains Ms. Brunet.

Vaudreuil-Soulanges companies export a wide variety of products to the U.S. - some 250 categories, ranging from precision tools to prepared meals and metal wire. “We have a very diversified economy, so the products impacted are just as varied,” she adds.

For the moment, the impact on the retail trade has not yet been assessed, but DEV expects to obtain this data shortly. According to the General Manager, small businesses will also be affected on a smaller scale, but the impact could increase over time.

At the same time, the introduction of counter-tariffs by Canada is likely to affect companies importing products from the United States. DEV is therefore maintaining active discussions on this subject in order to anticipate the effects on the local economic fabric.

Discussions have already been held with the MNA for Soulanges, Marilyne Picard, as well as with the Ministère de l'Économie et de l'Innovation. According to Minister Christine Fréchette, if an assistance program is put in place, it could be inspired by the measures deployed during the pandemic. “DEV may be called upon to coordinate this support with companies. However, assistance will not be standardized, but rather targeted to exports,” explains Ms. Brunet. 

Productivity and innovation: major challenges

Ms Brunet highlights a broader issue of concern to economic players: productivity. According to Statistics Canada, in 2023, productivity in Canada fell by 2.2% for the third year in a row. Ontario, Quebec and Alberta alone account for over 80% of this decline. In dollar terms, we're talking about an annual labor productivity of $59.10/hour in Canada and $55/hour in Quebec.

To reverse this trend, major investments will be needed, says Brunet. “We'll have to rely on optimized production lines and improve the performance of the goods we produce. At DEV, we have an innovation advisor who is already guiding companies towards innovation resources. We're going to strengthen our presence in the field to support them,” assures Ms Brunet.

Towards more strategic local purchasing

Buying local is often presented as a solution, but Brunet believes that consumers need to approach the issue more in terms of responsible local purchasing. “It goes beyond simply encouraging our businesses. We need to advocate responsible local purchasing. It's not by boycotting Costco that we'll help our economy, but rather by making wise choices about the products we buy,” she asserts.

With this in mind, DEV has stepped up initiatives to promote local purchasing in recent years. “Clearly, we will continue to invest in strategies to raise awareness and promote responsible local purchasing,” she adds.

“We are continuing our analyses and discussions with economic and political players to prepare companies for the challenges ahead. We need to think differently and act differently to adapt our economy to new business realities,” concludes Joanne Brunet.

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