Quebec Economy Slumps Amid USMCA Uncertainty
Quebec's economy is struggling to recover from trade tensions sparked by uncertainty around the USMCA agreement. According to National Bank of Canada, fresh US tariff threats are making it harder for Quebec to close the gap with the rest of Canada.
The bank's senior economist Alexandra Ducharme notes that companies often delay hiring, investment, and large orders until they know what rules they'll be operating under. This uncertainty is particularly concerning for Quebec, which has a higher exposure to cross-border manufacturing and supply chains compared to other provinces.
Quebec's economy grew just 0.1% in April, lagging behind Canada's 0.5% growth. Since the start of 2025, Quebec is down 0.5%, while Canada is up 1.0%. National Bank flags additional drags on the province's economy, including a weaker demographic outlook and higher energy costs.