Edmonton city council, business leaders talk tariff strategy as administrators review contracts

Promised tariffs on Canadian goods may have been paused, but efforts in Edmonton to prepare for them are ramping up.

Edmonton Mayor Amarjeet Sohi said during a city council meeting Tuesday that he and Eddie Robar, the city manager, met with the heads of the Edmonton Chamber of Commerce and the economic development agency Edmonton Global on Monday night to discuss the issue. 

They plan to call a meeting with chief executive officers from other economic development agencies and organizations, including the Edmonton International Airport, Epcor, the Edmonton Screen Industries Office and Explore Edmonton to discuss diversification, supply chains, infrastructure investment and interprovincial trade advocacy.

Sohi said he will also be convening a meeting with the chair of the Edmonton police commission to discuss further work combating the illicit drug crisis. 

"I hope the message today is clear: that we are all working together to approach the situation with the seriousness it requires and the collaboration it requires," he said.

The mayor said city council should keep encouraging Edmontonians to buy from local companies.

"Every local purchase is a vote of confidence in our local economy and supports local jobs," he said.

Effects of tariffs on City of Edmonton

City manager Eddie Robar said the promised tariffs are expected to be "highly disruptive" to Edmonton and regional economies, potentially affecting spending, trade flows, pricing and gross domestic product. 

Uncertainty could dampen business investment, lead businesses to relocate, and drive people and businesses to stockpile goods, he said.

He said tariffs and retaliatory tariffs would have far-reaching effects on many aspects of the city's budget.

The weaker Canadian dollar has already led to higher costs for transactions in U.S. dollars, he said, and increased costs for lumber or steel could drive up housing costs.

Robar said city administrators are reviewing contracts with U.S. companies and looking at ways of mitigating cost increases.

Mayors to meet Thursday

Sohi said he will be travelling to Ottawa on Wednesday and will be meeting on Thursday with the Federation of Canadian Municipalities' (FCM) Big City Mayors' Caucus, a group of representatives from Canada's biggest cities.

He said the group will be developing a united municipal strategy and meeting with federal ministers.

The FCM, which released a statement strongly condemning the U.S. tariffs on Feb. 1., intends to ramp up its efforts to build support among U.S. mayors, Robar said. 

Opportunities for businesses

Doug Griffiths, president and CEO of the Edmonton Chamber of Commerce, said work is underway between chambers of commerce in large cities to eliminate trade barriers between provinces.

He told city council the chamber has been having a conversation about identifying Canadian goods on store shelves.

Griffiths said the tariff situation is a crisis but also an opportunity that shouldn't be wasted.

"This is the perfect opportunity for this city to start to evaluate its economic opportunities and achieve its full economic potential," he said. 

Malcolm Bruce, CEO of Edmonton Global, said if a large federal assistance program arrives in response to tariffs, some of that money should go toward making the Edmonton region more attractive for international investment.

Councillors spoke at Tuesday's meeting about the importance of being united and working together to find solutions.

"It's not going to be easy, but I really appreciate the Team Edmonton but also very much Team Canada approach that we are all taking," Ward Karhiio Coun. Keren Tang said.