Quebec pivots to Europe to counter US tariff threats and Chinese monopoly on minerals

Quebec and Europe are set to deepen their economic ties and reinforce the resilience of their shared supply chains in response to mounting geopolitical tensions with the US and China.

Christopher Skeete, Quebec’s Minister of International Relations and La Francophonie, told Euractiv that US tariffs and Chinese export restrictions on strategically important minerals have driven Canada’s mineral-rich province to further develop its relations with Europe, a continent with which it shares deep historical, social, and cultural ties.

As the only French-speaking majority region in North America, Quebec shares “common values, a common world view [and] a common destiny” with Europe, Skeete said.

“Right now, we are putting more weight into this space, and we hope to go further, to achieve more,” Skeete added. “We believe in building a deeper relationship with Europe as a way of mitigating some of the risk of being dependent on our historically single customer, which is the United States.”

The comments come amid a warming of relations between Canada and Europe over the past year.

US tariffs hit provincial economy

Sweeping tariffs proposed by US President Donald Trump, his ambivalent stance toward NATO, and threats to annex Canada and Greenland have accelerated efforts to strengthen economic and defence cooperation.

With an economy heavily focused on manufacturing, Quebec has been hit particularly hard by this geopolitical volatility.

Trump’s tariffs have severely impacted the province’s export-dependent industries, especially its aluminium smelters. More than 70% of Quebec’s exports are destined for the US.

The province, which shares jurisdiction over economic matters with the Canadian federal government, is also highly vulnerable to supply disruptions in critical minerals used in numerous modern technologies, the production of which is dominated by China.

Mineral-rich Quebec crucial for “de-risking”

However, this mineral-rich region increasingly produces lithium, graphite, and various other elements considered strategically critical by Brussels.

“We can help Europe be more sovereign, while also helping them de-risk their dependency on Asian supply chains,” Skeete said, adding that the province aims to increase both its mining and refining capacity.

Asked whether breaking Beijing’s dominance over the global supply of critical minerals would be difficult, Skeete replied:

“It’s not a question of whether it’s hard. I think it’s a moral imperative. I think we have no choice.”

Skeete also highlighted Quebec’s capacity to strengthen Europe’s defence sector, noting that a Montreal-based company is the only Canadian firm to have signed a contract under the EU’s €150 billion ‘SAFE’ credit programme so far.

“We definitely want a second SAFE programme,” he said. “If we don’t seize this moment of a changing world to deeply integrate our economies, I think we will have missed a huge opportunity.”

Quebec to prioritise transatlantic relations

On 16 June 2026, the Government of Quebec announced its new international policy, titled “A reliable Québec in a world in transformation”.

Presented by Quebec Premier Christine Fréchette and Skeete, the policy represents the first major update since 2017 and marks a significant shift in Quebec’s approach to international relations.

Amid global uncertainties such as trade tensions with the US, the war in Ukraine, and the rapid development of artificial intelligence (AI), Quebec is redefining its international strategy and priorities through the lens of “national interest”.

This has major implications for businesses and investors. According to 2025 figures, the Quebec economy generates an annual GDP of over 600 billion Canadian dollars (approximately 427.6 billion US dollars) and exports worth approximately 180 billion Canadian dollars (approximately 128.3 billion US dollars).

To reshape its international relations, Quebec has identified three key areas of focus: diversifying trade relations, renewing diplomatic efforts in line with Quebec’s interests, and asserting Quebec’s identity more strongly abroad.

Through these priorities, the newly released policy document sets out the government’s core directions and outlines six key areas for businesses and investors:

• National interest as a cornerstone
• Diversification of business operations
• Natural resources and critical minerals: A strategic asset
• Europe as a strategic partner
• Economic Francophonie and scientific diplomacy
• Emerging markets

In this context, the new policy envisages further diversification of trade and investment relations, focusing particularly on Europe (including the Comprehensive Economic and Trade Agreement – CETA markets), the Indo-Pacific region, Africa, the Middle East, and Latin America.

For the business community, this strategic direction delivers a clear message: markets outside the US will benefit from increased state support, including trade missions, international partnerships, and targeted economic initiatives.

Quebec identifies emerging markets as a fundamental pillar of its trade diversification strategy.

The Indo-Pacific region alone represents two-thirds of global economic opportunities and is increasingly viewed as a key centre of economic and geopolitical influence.

While Quebec places special emphasis on Japan and South Korea as strategic partners in areas such as energy, defence, decarbonisation, and innovation, it adopts a pragmatic approach in its relations with India and China on areas of mutual interest.

Against this background, Canada and China announced a strategic partnership in January 2026.

Critical minerals agreement with the United Kingdom

In December last year, Quebec signed an agreement with the United Kingdom to secure critical and strategic minerals for the defence industry.

The agreement aims to position Quebec as a reliable partner in the current geopolitical environment.

Western countries are seeking partners to reduce their dependence on China, which controls a large share of the global market for critical and strategic minerals.

The European Union and the United Kingdom have announced that they will increase defence spending in response to the Russian threat, a sector that requires large quantities of critical minerals.

Skeete noted in an interview with The Canadian Press at the time that at least 10 of the 40 critical minerals deemed necessary by the EU are found on Quebec territory.

In 2024, the UK was Quebec’s fourth-largest European trading partner, with a bilateral trade volume exceeding 5 billion dollars.

Quebec’s exports to the UK have increased by 41% over the past five years, making the country the province’s second-largest customer in Europe and its sixth-largest globally.