Ottawa city council unanimously passed a motion on Wednesday 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.
U.S. President Donald Trump has imposed 25 per cent tariffs on all Canadian aluminum and steel imports, set to take effect on March 12, on top of a 25 per cent tariff on all Canadian goods, which has been delayed until March 4.
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 teh 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..
Staff updated councillors and said “quite a lot of work” has been done already in the seven days since the motion was approved by the Finance and Corporate Services Committee.
“We need to follow in lockstep with the province and Supply Ontario… To ensure were kept in the loop,” said Rogers. He added that he will be providing updates to council and committee regularly, including a detailed memo coming mid- to late-next week.
Rover Ward Coun. Riley Brockington was one of the first to speak to the motion.
“During the current trade war, I believe Canada will be confronted with multiple layers of economic crises that we have not seen since the depression of the 1930s,” he said.
Coun. Steve Desroches (Riverside South-Findlay Creek) said he had been speaking with local business owners, including those who are now choosing to source materials from China instead of the U.S.. He also requested that staff collaborate with the construction industry to “hear how they’re going to respond… so that our bids continue to be competitive and don’t put projects at risk.”
Rogers confirmed that staff are “engaged very closely” with the construction industry and local construction companies in Ottawa.
The motion also calls on Mayor Mark Sutcliffe to work with Gatineau Mayor Maude Marquis-Bissonnette on freeing up trade barriers between the two provinces and convene a meeting of local business leaders to develop an action plan.
Speaking to reporters after council adjourned, Sutcliffe said he does not the economic threats facing the city are simply a “30-day scenario”.
“We’re seeing evidence that we’re going to be dealing with economic uncertainty for the next few years. Not just because of the threat of tariffs from the new US administration, but the prospect of federal government job cuts and other general economic uncertainty,” he said. “So I actually think, regardless of what might transpire in the next 30 days, this is a good opportunity for us to get everybody together and do everything we can to support the local economy. It’s vitally important.”
