Facing some pushback, Toronto mayor's tariff plan heads to council
Coun. Josh Matlow says he worries shift away from American procurement could impact taxpayers
City council is being asked to put the final stamp of approval on the mayor's tariff response plan this week, but some councillors on her executive committee have already raised concerns that it could cost taxpayers and doesn't do enough to help businesses.
Mayor Olivia Chow wants to restrict the city's procurement from American companies, with some wiggle room if the city needs it. Chow's plan would also allow industrial property owners to have taxes deferred if they're hit hard by tariffs.
The response was announced last week by Chow, as she stood under a 12-metre tall Canadian flag that dangled between two fire trucks, and was passed by her executive committee two days later.
But it did not make it through that hoop without some pushback, and Coun. Josh Matlow shared several worries about the plan.
"I know that every leader is being asked to fight against the United States right now. It's an emotionally charged issue," Matlow told reporters outside the meeting. "But I have concerns about how hastily this was done and really how it was put forward with how fluid the situation is."
According to a CBC analysis, about 10 per cent of contracts the city awarded in the last two years went to American companies. The city spent about $3.2 billion in total on suppliers in that time frame.
Josh Matlow concerned taxpayers could be on the hook
Matlow's main concern is that staff haven't had time to analyze how the shift in procurement strategy could impact costs for taxpayers.
When questioning city staff at the meeting, Matlow raised concerns about a smaller pool of bidders driving up prices or the potential of an American company being the only supplier able to fulfill a contract at a certain price the city's looking for.
Stephen Conforti, the city's chief financial officer, said the city has carve outs in the plan, meaning it can continue to deal with American suppliers if it's in the city's best interest. An exception the city manager has said could be used for contracts around important services like water.
"That's vague," Matlow said in response to Conforti. "For us to vote on it, we don't really know what that will mean."
Matlow asked if the decision could lead to higher taxes next year.
"It really would be too early to tell," said Conforti. He added the city may have to reprioritize things in the budget, not necessarily increase taxes.
Overall, Matlow says he has concerns about the response's impact.
"In other words, I don't know if [our plan] will automatically change Donald Trump's opinion," Matlow told reporters.
Some councillors want to see more for businesses
Another plank of the mayor's tariff response plan is the tax deferral program. It would create an application-based process for industrial property owners impacted by tariffs who need more time to pay taxes. The program would grant them a six month deferral on those taxes, at which point they'd be due to the city.
Coun. Vincent Crisanti asked staff if they'll work with businesses to ensure paying taxes at that point isn't a hindrance to their business.
"Otherwise, I'm not sure what we're accomplishing with this deferral if they're going to have to pay it all at the end of six months regardless," he said.
Crisanti added that a business that faced six months of hard times will likely still be struggling when the tax deadline hits.
Conforti, the city's CFO, did not say if any additional support would be offered in the scenario Crisanti posited. He said it's "very much" a deferral program "essentially to buy [businesses'] time."
But Crisanti still had concerns. "I think we need more than just this to assist companies beyond that six month point," he said.
Criticism of that support has come from outside the executive committee, as well. At city council in February, Coun. Brad Bradford unsuccessfully asked for a 25 per cent tax cut for small and industrial businesses to offset tariff impacts.
"While a six-month property tax deferral may help businesses with short-term cash flow, they will still have to jump through bureaucratic hoops for even this modest bit of relief," Bradford said in a statement responding to the mayor's plan.
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