The cityâs general manager of corporate services believes it will be some while before U.S. tariffs imposed on Canada on Mar. 4 are felt by the municipality.
âUsually I start out with Iâm happy to present a report but I think Iâm less happy about this one than many others weâve brought before you,â Joe Sass told council at its Monday (Mar. 3) meeting. âThe impacts of this wonât likely be felt immediately, it will take some time.â
Âé¶čAV staff have identified several areas that could be affected, including infrastructure contracts at Âé¶čAV International Airport worth around $3 million U.S., and materials for infrastructure projects with an estimated $20 million U.S. in spending at risk in 2025.
Sass said a critical incident response team has been formed to monitor risks.
âAt this point 99 per cent of our suppliers are Canadian,â he pointed out. âThere is some second-layer risks. Some of our direct Canadian proponents may have some exposure to American products, but that is something we will work through in time.â
One tricky issue is how to prioritize Canadian-made goods without violating trade agreements. While the city canât implement a strict âBuy Canadianâ policy, it can identify more Canadian suppliers to strengthen interprovincial trade, and adjust procurement strategies to favour Canadian companies when allowed.
A staff report recommends not implementing a ârestrictive Canadian-only policy, but instead focus on local value-based performance criteria.â
âThere are a number of strategies we have already employed recognizing ongoing risk,â Sass noted. âAs an example, we hold more US dollars today than we would typically holdâŠjust to give us some up front mitigation knowing we have risk coming down the pipe.â
Councillor Ron Cannan, who was on International Trade Committee for several years while a Member of Parliament, expects the tariffs will be short-lived.
âAmericans are going to be paying for this as well,â he added. âAs soon as they start to get push back theyâll be retaliating and in-fighting.â
