Toronto’s plan to counter tariffs includes barring U.S. suppliers from some contracts

Toronto Mayor Olivia Chow says the city’s response to steep U.S. tariffs on Canada will include barring American companies from bidding on some city contracts and a tax deferral program for industrial properties impacted by the tariffs.

Chow says the city’s plan proposes amendments to its procurement bylaw, including awarding contracts for goods and services worth under $353,000 and construction work worth under $8.8 million exclusively to Canadian companies.

She says the city will also create an industrial property tax deferral program to allow eligible businesses impacted by tariffs to defer payment for six months, providing cash flow relief.

The city’s plan also includes partnering with other municipalities and the province to “reduce reliance” on U.S.-based suppliers.

Chow adds the city will work directly with local business owners to promote expansion efforts and encourage residents to choose Canadian-made goods and services.

The mayor says the plan will go before the city’s executive committee for approval on Wednesday, before it’s presented to council later this month.

“Working together, Toronto has tackled difficult challenges in the past … each time we emerge stronger,” Chow said at a press conference Monday. “United, we will do it again.”

She also said Toronto Fire Services will prioritize Canadian-made firefighting equipment and will buy 17 new pumper trucks from a Canadian company.

City manager Paul Johnson called it a “period of transition” as the city examines its contracts with American companies.

“We have some areas right now that would be problematic tomorrow to transition away from,” Johnson said. “I want to be very clear: it’s not about saying, ‘Well, we can’t.’ It’s about when, and the mayor has given me clear instructions: let’s try and move away from a reliance on American suppliers as soon as we can.”

Earlier this month, U.S. President Donald Trump sparked a trade war by hitting Canada and Mexico with across-the-board tariffs, only to provide a one-month pause for goods that meet the rules-of-origin requirements under the Canada-United-States-Mexico Agreement on trade days later.

Last week, Trump imposed 25 per cent tariffs on imported steel and aluminum.

He threatened to double those tariffs on Canada in response to Ontario Premier Doug Ford slapping a 25 per cent surcharge on the province’s electricity exports to three U.S. states. Ford later backed off the surcharge and Trump backed down on doubling the steel and aluminum tariffs.

This report by The Canadian Press was first published March 17, 2025.

Rianna Lim, The Canadian Press