The Trump administration’s economic threats have put a “chill” on investment projects by foreign companies in the Montreal region, according to Montréal International CEO Stéphane Paquet.
The non-profit organization surveyed foreign subsidiaries operating in the metropolitan region about their intentions. Nearly half are considering reducing or freezing their investments.
“So that’s the state of mind,” Paquet said at a press conference Friday.
Montréal International unveiled its results for the year 2024, but the focus was clearly on the coming months, which promise to be volatile as the U.S. president steps up his economic threats to his trading partners, including Canada.
Potential customs duties would have a “major impact” for 62 per cent of the subsidiaries questioned, according to the survey. Only nine per cent said that import duties would have no effect on their business.
“Not many companies responded, but this is in line with other surveys we have seen elsewhere, which are worrying on the whole,” Paquet said.
In the field, Paquet has spoken to companies that have decided to put their projects on hold.
“I have a company that had planned to invest $200 million in the life sciences packaging sector, for example,” he said, adding that the company said, “‘Well, a lot of my products were going to the United States. So, I’m going to take a break and see how the situation develops.‘”
For the time being, the subsidiaries seem to be waiting, but the head of Montréal International says that he has not seen any projects scrapped for the time being.
“Companies are either taking a break or adapting, but for the moment, I don’t have any clear-cut cancellations. But clearly, people are waiting for answers,” he said.
This report by The Canadian Press was first published in French on Feb. 28, 2025.
