TORONTO – Mayor Olivia Chow, alongside members of the Mayor’s Economic Action Team, has unveiled a new strategy to safeguard the city’s economy in response to tariff measures imposed by the United States. The plan, outlined in a City of Toronto staff report titled United States Tariff Response: A Strategy to Protect Toronto Businesses, Workers and Residents, aims to mitigate the financial strain on local industries, workers, and consumers.
The announcement took place at Fire Station 334, underscoring Toronto Fire Services’ commitment to prioritizing Canadian-made fire apparatus and protective equipment—a key example of how the city is leveraging its purchasing power to support local supply chains.
Protecting Toronto’s Economy
With tariffs on all Canadian goods set to take effect on April 2, and existing levies on steel, aluminum, and other exports already impacting businesses, the economic stakes are high. Toronto, which contributes 25% of Ontario’s GDP and engages in approximately $123 billion in trade with the U.S. annually, faces significant uncertainty.
Building on Sidewalks to Skylines: Action Plan for Toronto’s Economy, the newly introduced strategy accelerates initiatives to counter the immediate and long-term repercussions of rising U.S. protectionism.
City of Toronto protects local economy with new Mayor’s Economic Action Plan in response to US tariffs
News Release: https://t.co/SMF4CbNPr7 pic.twitter.com/NpmIWHr0ut
— City of Toronto 🇨🇦 (@cityoftoronto) March 17, 2025
Immediate Relief Measures
Over the next 30 days, the City plans to implement 10 key actions to bolster local businesses and workers, including:
- Prioritizing Canadian suppliers in City procurement processes
- Deferring property taxes for industrial properties to ease financial strain
- Launching a “Love Local” campaign to encourage the purchase of Canadian-made goods and services
- Strengthening support and promotional efforts for Toronto’s manufacturing sector
- Partnering with regional municipalities and the Province to reduce reliance on U.S.-based suppliers
- Expanding global markets for Toronto businesses through trade partnerships
- Supporting technology adoption to enhance competitiveness
- Increasing procurement opportunities for Indigenous, Black, and diverse suppliers
- Assisting businesses in preparing for economic and technological disruptions caused by tariffs
- Directing City staff spending toward Canadian-owned and local businesses
Procurement Policy Amendments
To reinforce its commitment to local businesses, the City is proposing amendments to its procurement bylaw. The changes would:
- Award new City contracts under $353,300 for goods/services and $8.8 million for construction exclusively to Canadian suppliers
- Deem American-based suppliers ineligible for new competitive contracts when deemed beneficial to the City
- Increase outreach to find local suppliers for essential goods, such as construction materials and emergency services equipment
- Expand procurement opportunities for Indigenous, Black, and diverse suppliers under the City’s Social Procurement Policy
Industrial Property Tax Deferral Program
To further assist industrial businesses affected by tariffs, the City is introducing an Industrial Property Tax Deferral Program, allowing eligible property owners to defer tax payments from June 1 to November 30, 2025, without incurring late fees or interest. The program, expected to cost between $300,000 and $750,000, aims to provide critical relief to struggling businesses.
The City is also working closely with the federal and provincial governments to ensure a coordinated national response under a “Team Canada” approach.
The staff report will be presented to the Executive Committee on March 19 before moving to Toronto City Council for further discussion at the end of the month. The full report is available on the City’s website.
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