Yesterday, Toronto City Council took decisive action to protect our local businesses, workers, and residents from the economic challenges posed by new U.S. tariffs. We approved the Mayor’s Economic Action Plan in Response to U.S. Tariffs, a clear and strategic approach to safeguarding Toronto’s economy from a 25% tariff on Canadian products and a 10% tariff on energy exports, set to take effect on April 2.
These tariffs will hit industries across the city, from manufacturing to retail, and we can’t afford to sit back and wait. Toronto’s economy is built on resilience, innovation, and strong local businesses, and this plan is about making sure they have the support they need.
Protecting the Canadian economy means striking a delicate balance. While we stand firm against the decisions made by the U.S. president, we must also recognize the importance of American tourism and the many U.S. companies that employ tens of thousands of Canadians. In our rightful frustration, we must not lose sight of the fact that many Americans are our friends, families, and neighbors. They are still welcome here, and we must continue to foster relationships that benefit both of our nations.
What This Plan Does
This isn’t just a reaction—it’s a forward-looking strategy to make our economy stronger. It’s about striking a balance that supports Canadian businesses, while still welcoming U.S. investments and visitors. We worked closely with the Mayor’s Economic Action Team—business and labour leaders giving us brilliant real time advice, who know what’s at stake—to come up with real solutions. Here’s what’s happening:
✅ Prioritizing Canadian Suppliers: We’ve changed City procurement policies to prioritize Canadian suppliers and reduce reliance on U.S. goods and services. For certain contracts, U.S. suppliers will be excluded altogether, meaning more opportunities for Toronto-based businesses.
✅ Property Tax Deferrals for Industrial Businesses: To help manufacturers and industrial businesses through this transition, we’ve introduced a six-month industrial property tax deferral program, letting eligible property owners delay tax payments without penalties until November 30. This will provide breathing room while they adjust.
✅ Boosting Local Manufacturing: Manufacturing is a key part of Toronto’s economy, and we’re stepping up support. A one-stop concierge service will help businesses navigate city programs, while a new media campaign will highlight the value of Toronto-made goods to encourage more local buying.
✅ Strengthening Supply Chains: We’re working with regional municipalities, Supply Ontario, and federal agencies to cut reliance on U.S. supply chains and open up new markets for Toronto exporters. The more diverse our trade relationships, the stronger we are.
✅ Reducing City Spending on U.S. Goods: We’ve directed City staff to limit purchases of U.S. products and services wherever possible and shift to local alternatives. Every dollar spent locally helps our economy grow.
Love Local: Your Role in Strengthening Toronto
Government action is just one part of the equation—your support for local businesses is just as crucial. That’s why we launched the Love Local campaign, encouraging Torontonians to shop, dine, and buy Canadian-made.
The campaign is already picking up steam, with businesses and community leaders rallying behind it. Every purchase made at a neighbourhood store, every meal at a locally owned restaurant, and every choice to buy Canadian-made products strengthens our economy and protects jobs.
What’s Next?
The economy is constantly evolving, and we are staying ahead of it. This is just the first phase of our actions. We have structured the action plan around 30, 60, and 90-day milestones, and City staff will report back to the July Executive Committee with updates on how the plan is progressing and any additional steps we need to take. This approach ensures we remain flexible and continue supporting Toronto businesses through these challenges.
As Budget Chief and the Mayor’s Economic Development and Culture Champion, I’m proud to stand with my colleagues on City Council to take meaningful action on this issue. This isn’t just about responding to a crisis—it’s about building a Toronto that is resilient and ready for the future.
Now, I need your help. Whether you’re a business owner, a worker, or a resident, you have a role to play in keeping our economy strong. Let’s stand together, support local businesses, and make sure Toronto continues to thrive.
For full details, visit toronto.ca/tariffs.
Stay tuned for a full Council Round-Up e-blast next week, where I’ll break down the key decisions from a packed Council meeting agenda and what they mean for Toronto.