The city鈥檚 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.
鈥淯sually I start out with I鈥檓 happy to present a report but I think I鈥檓 less happy about this one than many others we鈥檝e brought before you,鈥� Joe Sass told council at its Monday (Mar. 3) meeting. 鈥淭he impacts of this won鈥檛 likely be felt immediately, it will take some time.鈥�
琉璃神社 staff have identified several areas that could be affected, including infrastructure contracts at 琉璃神社 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.
鈥淎t this point 99 per cent of our suppliers are Canadian,鈥� he pointed out. 鈥淭here 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.鈥�
One tricky issue is how to prioritize Canadian-made goods without violating trade agreements. While the city can鈥檛 implement a strict 鈥淏uy Canadian鈥� 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 鈥渞estrictive Canadian-only policy, but instead focus on local value-based performance criteria.鈥�
鈥淭here are a number of strategies we have already employed recognizing ongoing risk,鈥� Sass noted. 鈥淎s an example, we hold more US dollars today than we would typically hold鈥ust to give us some up front mitigation knowing we have risk coming down the pipe.鈥�
Councillor Ron Cannan, who was on International Trade Committee for several years while a Member of Parliament, expects the tariffs will be short-lived.
鈥淎mericans are going to be paying for this as well,鈥� he added. 鈥淎s soon as they start to get push back they鈥檒l be retaliating and in-fighting.鈥�
