City pledges to counter U.S. tariffs while keeping projects on track
Staff will work with province, other municipalities as economic threats loom
Ottawa is working in "lockstep" with the province and other municipalities as tariffs are poised to strike local industries at a time when the city is focused on the upcoming construction season, city staff told councillors on Wednesday.
Council unanimously passed a motion calling on staff to monitor and mitigate the local impact of a potential Canada-U.S. trade war.
"I believe Canada will be confronted with multiple layers of economic crisis that we have not seen since the depression of the 1930s," warned River Coun. Riley Brockington.
"[U.S. President Donald] Trump's justification for the tariffs are unfounded and his lack of any sound economic policy is dangerous, not only for the countries he threatens like Canada, but his own people, his own industries and economies across America."
A 25 per cent tariff on all Canadian aluminum and steel imports is set to take effect March 12. That's on top of a 25 per cent tariff on all goods that has been delayed until March 4, while the U.S. negotiates border security agreements with Canada and Mexico.
- Local businesses brace for U.S. tariffs on steel and aluminum
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Cyril Rogers, the city's chief financial officer, told councillors that "quite a bit of work" has been done on the file in the last week, including getting assurances from Supply Ontario that cities will be kept in the loop on strategies moving forward.
"As we go into the deep dive of the construction season and tenders right now, we're keeping a close pulse [on infrastructure]," said Rogers.
Escalating costs feared
At least 90 per cent of the city's contracts for goods and services are already penned with companies in the National Capital Region, he said. But some materials used by those companies still have to cross the border.
"We spend billions of dollars in any one year on a capital budget," said Coun. Steve Desroches. "[The construction industry] is going to make decisions about where they source and what they purchase."
Desroches said the city needs to know how companies will respond to tariffs to ensure bids remain competitive and projects aren't put at risk when materials such as steel can't be sourced.
"Just ... saying 'buy Canadian,' we might not be satisfied with the bids that come back, as much as we want to be patriotic and help the cause, if it's going to balloon projects to the point of being unaffordable," Desroches said.
Staff have pledged to provide a more detailed response on how the city will deal with the situation in the next week, followed by periodic updates afterward.
'A lifeline'
The motion also called on Mayor Mark Sutcliffe to work with his counterpart in Gatineau on a campaign to break down interprovincial trade barriers, an effort the pair began last week.
The city's efforts to counter tariffs are already getting a warm reception from members of the local business community.
"We are delighted to see the mayor of Ottawa take leadership of regional initiatives to stimulate purchasing here," said Pascale de Montigny Gauthier, CEO of Regroupement des gens d'affaires de la capitale nationale, which represents francophone businesses in the National Capital Region.
"In view of an anticipated economic collapse, the gesture is viewed as a lifeline," she said.
Sutcliffe has already convened a meeting of business leaders with whom he aims to keep in contact as the city shapes its strategies.
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With files from Remi Authier