The Quebec government is cutting payroll taxes for some businesses affected by the trade war launched this year by U.S. president Donald Trump.
Premier Philippe Couillard said the aid package will cost the provincial treasury about $860 million over the next five years, but that it should stimulate billions of dollars worth of economic growth.
Sales to the U.S. from the steel and aluminum industry have reportedly dropped since the U.S. imposed tariffs, but several other industries are affected.
To offset that the government is boosting the investment tax credit for about 5,000 manufacturing companies, while payroll taxes for health services will be reduced by $260 million.
"Small and medium businesses are the backbone of our economy and we need absolutely to keep them as productive as possible, give them the tools to become even more productive, so the message to Mr. Trump will be look, do as you feel you must do. What we will do is to produce at a better cost and higher quality, and we will win. That's exactly the message we're sending today," said Couillard.
Couillard said he does not think anything will convince Trump that tariffs are a no-win tactic, but he said other countries and provinces must do what they can.
Other parts of the package announced Wednesday include loans and grants to farms and money to help companies develop new markets.
Most of the measures announced are already in effect.