Toronto shifting procurement rules to favour Canada
Measures include exclusively awarding new construction contracts under $8.8 million to Canadian suppliers.
In response to rising U.S. tariffs, the City of Toronto has unveiled a new action plan aimed at protecting local businesses and workers, with a particular focus on strengthening Canadian supply chains in the construction sector.
Mayor Olivia Chow, joined by members of the Mayor’s Economic Action Team, announced the City of Toronto United States Tariff Response: A Strategy to Protect Toronto Businesses, Workers and Residents.
The action plan is part of a broader City staff report that outlines measures to mitigate the economic impact of U.S. tariffs, which are set to take effect on April 2 for all Canadian goods. Tariffs on steel, aluminum, and other exports are already in place, posing a significant challenge to Toronto’s economy, which drives 25% of Ontario’s GDP and conducts $123 billion in annual trade with the U.S.
“These trade measures create significant uncertainty for Toronto’s economy,” Mayor Chow said. “We are taking swift action to support our businesses, protect workers, and strengthen our local supply chains.”
Construction sector front and centre
Within the next 30 days, Toronto will implement 10 actions aimed at supporting businesses, including prioritizing Canadian suppliers in City procurement processes to bolster local manufacturing and industrial sectors.
For construction projects, the City plans to partner with regional municipalities and the Province to reduce reliance on U.S.-based suppliers and expand procurement opportunities for Indigenous, Black, and diverse suppliers. Additionally, efforts will be made to find local alternatives for key goods such as construction materials, technology, municipal water equipment, and paramedic supplies.
Procurement Policy Amendments
A major component of the plan involves amendments to the City’s procurement bylaw to give Canadian suppliers priority in competitive bidding processes. Proposed changes include:
- Exclusively awarding new City contracts under $8.8 million for construction to Canadian suppliers.
- Deeming American-based suppliers ineligible to bid on new contracts when it aligns with the City’s best interest.
- Enhancing supplier outreach programs to identify local alternatives for construction-related materials.
These amendments aim to ensure Canadian construction firms are positioned to thrive in the face of increasing U.S. protectionism.
Industrial Property Tax Deferral Program
Recognizing the financial strain on industrial businesses, the City is proposing an Industrial Property Tax Deferral Program. Eligible industrial property owners facing hardship due to tariffs could defer tax payments from June 1 to November 30, 2025, without incurring late fees or interest. The initiative, with an estimated cost of $300,000 to $750,000, is expected to provide much-needed liquidity to companies.
As the plan moves forward, it will be considered by the City’s Executive Committee on March 19, followed by Toronto City Council at the end of the month. The City is also collaborating with the Government of Canada and the Province of Ontario to coordinate efforts under a “Team Canada” approach, ensuring a unified response to U.S. trade policies.
