In the wake of renewed tariff threats from the United States, Calgary city councillors were briefed Tuesday on the city’s plans to mitigate the impacts.
Earlier this week, U.S. President Donald Trump said tariffs would be imposed on Canadian goods on March 4, after previous threats a 25 per cent levy would be slapped on all Canadian goods going stateside with a lower 10 per cent tariff on energy.
“We don’t have a crystal ball, we don’t know if he’s actually going to impose these,” Calgary Mayor Jyoti Gondek told reporters.
“Many things can happen between now and March 4, so it’s important to have a plan.”
According to the city’s chief administrative officer, David Duckworth, approximately 95 per cent of the City of Calgary’s contracts are with Canadian and non-American suppliers, while just five per cent are with U.S. suppliers.
However, Duckworth noted the city is still adjusting its processes to further mitigate its “limited exposure” to the tariffs.
“The city has been examining the impacts of U.S. tariffs on a contract-by-contract basis,” Duckworth told council.
“Within each project, we are identifying the level of U.S. dependency and will employ strategies to mitigate the impact of tariffs to those projects.”
Duckworth pointed to the event centre project team proactively sourcing steel and aluminum from within Canada and Europe as price fluctuations and supply chain delays are anticipated.
City officials have developed a tariff estimator tool to determine impacts from various levy rates, and are monitoring foreign exchange risk due to the low Canadian dollar, Duckworth told council.
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Other sourcing strategies include awarding contracts to multiple suppliers to limit supply chain impacts, exploring alternate logistic routes to avoid issues at the border, purchasing materials in advance and determining local alternatives when sourcing materials.
Fees for companies to submit bids to the city will also be eliminated, Duckworth said.
“Council, I want you to know my team and I are taking this situation extremely seriously,” Duckworth said.
“We’re doing everything we can to reduce tariff impacts to ensure Calgary remains a vibrant hub for economic activity.”
However, the uncertainty around the tariff situation is already taking hold for some Calgary businesses, Deborah Yedlin with the Calgary Chamber of Commerce told council.
“What we’re hearing from our members is that dollars are sitting on the sidelines,” Yedlin said.
“Big companies and small companies are waiting to make investment decisions to carry forward, to commit capital, and investors are also standing on the sidelines because they’re concerned the impact the tariffs will have.”
Yedlin said the concern is across various industry sectors and all sizes of businesses.
Earlier this month, the Canadian Chamber of Commerce estimated that Calgary was the second most vulnerable Canadian city to U.S. tariffs, with roughly $119 billion, 96 per cent of the city’s exports, going to the United States.
“We’re opening lines of communication, not just in the U.S. but around the world to make sure people understand our story and open up those markets for our products,” said Brad Parry, CEO of Calgary Economic Development.
City council approved six recommendations from city administration including an assessment of the city’s procurement policies and processes to better support the purchase non-American goods and services, as well as support or advocate for local supply chains, and advocate to all orders of government to eliminate inter-provincial trade barriers.
Ward 1 Coun. Sonya Sharp questioned directing city administration to undertake the work, and if it was possible to make Calgary “tariff proof.”
“If we’re going to send administration to do some work, make sure it’s stuff they’re not already doing,” Sharp told reporters. “I think it was a bit of a political stunt, but I’ll leave it at that.”
If tariffs are imposed, city councillors will get a month briefing on impacts to the City of Calgary including supply chain disruptions and increased costs. Those briefings are set to begin in April.
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City of Calgary outlines steps in preparation for U.S.-imposed tariffs
