Kitchener, Waterloo and Guelph prepare for proposed U.S. tariffs, aim to use local suppliers

Municipalities must take action in light of proposed U.S. tariffs and their impact on the local economies, two local mayors said Monday as they proposed motions for their cities to buy Canadian-made products whenever possible.

Kitchener Mayor Berry Vrbanovic and Waterloo Mayor Dorothy McCabe brought forward motions to their councils on Monday. Vrbanovic's motion was unanimously supported by councillors during a special council meeting Monday afternoon.

U.S. President Donald Trump had vowed to impose tariffs on a number of Canadian goods on Feb. 1. He paused those plans for at least 30 days after Prime Minister Justin Trudeau made a series of commitments on Feb. 3 to improve border security.

Then on Monday, Trump announced 25 per cent tariffs would be imposed on steel and aluminum from all countries "without exceptions or exemptions" effective March 12.

McCabe's notice of motion was brought forward during Monday's meeting and will be discussed on Feb. 24.

In bringing her notice of motion forward, McCabe said she's happy to see municipalities across the region, and the region itself, come together to develop a sector-by-sector response to the tariffs.

"We're obviously very concerned," McCabe told her council colleagues Monday night. "We're taking this threat very seriously and we'll be coming together with our economic development leaders across Waterloo and Waterloo region to develop a strategy to support the local businesses here, to support the city's response."

WATCH | 'Buy Canadian' starting to have an impact on retail market:

‘Buy Canadian’ starting to have an impact on retail market

12 days ago

Duration 2:33

U.S. tariff threats and the possibility of a trade war are already having an impact on how some Canadians spend their money, with many saying they’re boycotting American products and buying Canadian.

Unanimous support by Kitchener councillors

Kitchener councillors all stood to vote in favour of the motion before Oh Canada was played.

"It's clear that there is a new working relationship that's developing with our southern partner in the United States," Vrbanovic said.

"In terms of encouraging people to choose Canada, to shop local, to buy Canadian, those are all things that are in line with even actions that this council has previously taken."

Coun. Scott Davey seconded the motion and said he has been "disappointed" by the threat of tariffs.

"When I first heard 'America first,' like, it's a great slogan. But what I'm beginning to understand is what 'America first' really means is everyone else is last in the new world vision we're seeing from south of the border. So it's unfortunate that motions like this have to come forward, but I will support it because we really don't have another choice."

Both motions come after regional Chair Karen Redman issued a statement where she said she was asking staff "to explore options for action, including limiting the impact of tariffs on regional services, and exploring potential procurement measures."

Redman also requested an action plan to support local businesses be developed by Waterloo Economic Development Corporation and through the Business Economic Support Team Waterloo Region.

WATCH | Tariffs on Canadian steel, aluminum 'entirely unjustified,' PM says:

Tariffs on Canadian steel, aluminum 'entirely unjustified,' PM says

11 days ago

Duration 1:13

Prime Minister Justin Trudeau says Canada will work with the U.S. in the coming weeks to highlight the negative impacts of 'unacceptable' 25 per cent tariffs on both Canadians and Americans. 'If it comes to that, our response, of course, will be firm and clear.'

'We cannot sit idly by'

In a media release, Guelph says about 98.5 per cent of the city's purchases come from Canadian vendors. Of these, 29 per cent are sourced from businesses based out of Guelph, the city says.

Guelph chief administrative officer Tara Baker said in the release that there may still be components manufactured in the U.S. or elsewhere in the purchases and that's due to the "complex nature of supply chains."

"We want to emphasize that the City of Guelph understands the complexities of the situation and remains committed to working with all levels of government to advocate for the protection of local jobs and the economic well-being of Guelph and Canada as a whole," Baker said.

On Monday, the city announced it has launched a new trade and tariff resource hub, which offers information for residents about how to shop Canadian and support local businesses and information for businesses about upcoming webinars and information sessions and links to local and national industry associations.

Guelph Mayor Cam Guthrie said thousands of jobs could be affected in the city.

"We cannot sit idly by," he said in the release. "We must ensure that each one of us supports our local economy and buys Canadian. We need to take the extra steps to research where our products are made."