After months of threats, Trump officially implemented a 25 per cent blanket tariff on Canadian products, as well as a 10 per cent levy on Canadian energy, on Tuesday morning, and Ottawa businesses and consumers must band together to navigate the impacts, the Ottawa Board of Trade says.
The tariffs were originally scheduled to take effect last month, but the two leaders negotiated a 30-day pause in exchange for further Canadian policy action to secure the Canada-U.S. border.
Hours after United States President Donald Trump imposed 25 per cent tariffs on Canadian goods and services, Ottawa was buzzing as businesses and consumers grappled with the potential impacts.
While Prime Minister Justin Trudeau spoke to media on Parliament Hill, protestors rallied just around the corner at the United States embassy, flying both Canadian and Ukrainian flags and holding signs that read, “Canada is not for sale.”
Ottawa businesses will survive the tariffs, though, according to the Ottawa Board of Trade (OBOT), if the community bands together and unites in the face of economic threat.
Sueling Ching, president and CEO of OBOT, said the “irresponsible tariff decision” will damage businesses on both sides of the border “for no just reason.”
OBOT is anticipating disruptions to supply chains and rising costs at the detriment of Ottawa’s economic growth.
In turn, local manufacturers, importers and small businesses will feel the impacts, she told Ottawa Compass, as reduced competitiveness affects jobs and investment in the Ottawa region.
“In response, Ottawa businesses and residents simply must come together to strengthen our local economy,” she said. “Businesses should explore new markets, diversify supply chains, and join [OBOT] in advocating for policies that grow our economy, lower costs and increase productivity.”
Ottawans can also support the economy by choosing local products and services and keeping investment within the community.
But on a national level, Canada must “act decisively to ensure a competitive business environment and protect our economic future,” said Ching.
“Strengthening internal trade, expanding global partnerships, and modernizing our tax and regulatory systems are critical,” she continued. “We urge all levels of government to work in radical collaboration, taking bold action to build confidence in our own economy and secure long-term prosperity for our businesses and workers.”
On Feb. 13, Ottawa city council unanimously passed a motion directing staff to monitor and mitigate the local impact of a possible trade war between Canada and the U.S. as threats of tariffs continue to loom.
City staff say Ottawa is working collaboratively with the province and other municipalities to prepare for tariffs, especially as the city prepares for the upcoming construction season.
The motion from Orléans South-Navan Coun. Catherine Kitts requests that staff present a plan to ensure the City’s procurement bylaws support the purchase of local and Canadian goods and services where possible, collaborate with other levels of government to create local supply chains, and examine only using banking and investment services of Canadian financial institutions.
The city is working to “keep a close pulse” on infrastructure and procurement, Cyril Rogers, the city’s chief financial officer, told councillors. He said at least 90 per cent of the city’s contracts support companies in the Ottawa-Gatineau region, but that doesn’t mean that some of those materials don’t cross the border from the U.S..
The motion was tabled anticipation of the tariffs and in response to Trump’s continued threats of annexation of Canada and passed unanimously.
— with files from Davis Legree
