Thank you for the question.
We are aware that negotiations with the U.S. administration aren't easy at present. We see it, and we understand it. However, the reason we're repeating ourselves is that some sectors have very high tariffs. A 50% tariff rate is significant. We have to be able to take the pressure off these companies.
As you said, we are obviously in a world of uncertainty. I often think that we're on a roller coaster and that the ride will never stop. That's our current situation.
To support manufacturing companies, the government must first look at what it is able to control in its business environment.
I talked about temporary foreign workers earlier. I know that the situation isn't the same in all Canadian provinces, but we're in a unique situation in Quebec because of our permanent immigration system. It's something that needs to be looked at.
We also need to look at public contracts and make sure that we prioritize manufacturing companies that manufacture in Canada, not those that only have a commercial establishment. Guidelines have been announced. So we look forward to seeing the result on that front.
Beyond these important measures, we need to look at the financial issue. Struggling companies are working with EDC or the Business Development Bank of Canada, or BDC, to explore financing options. That's very good, we have to do it and we have to keep working on it.
That said, some companies are having cash flow problems, so we have to be able to put flexible programs in place. I talked about it briefly earlier. For example, Canada Economic Development for Quebec Regions announced the regional tariff response initiative, or RTRI. This initiative goes a bit in that direction for projects of a certain size. It has a liquidity component and a loan component.
So it's important to be able to adapt the programs. Obviously, it isn't necessary to do that for everyone. It's not a matter of being an open bar; it's a matter of targeting the businesses and subsectors that are the most affected by the tariffs. The goal is to be responsible with government money. Then you have to look at those options.
In addition, we obviously have to continue making efforts to negotiate new markets, both within and outside Canada.
That said, EDC knows better than I do that it takes time to develop a new market. Developing a new trading partnership in a new country is complex. These solutions will therefore be put in place in the longer term.
When we talk about significant investments in defence, that's good news and very important for our Quebec manufacturing companies, but it's not going to happen tomorrow morning.
We have to be able to build bridges and ensure that our businesses will always be there, that they will be strong and able to win these contracts when the government is ready to propose them.