Toronto mayor looks to exclude U.S. companies from future city contracts in response to tariffs

Toronto is launching its first response in a trade war against the U.S., with Mayor Olivia Chow announcing Thursday the city will solely award contracts valued at less than $353,000 to Canadian businesses — and potentially exclude American companies from all future contracts. 

Speaking at a TTC facility for an unrelated transit announcement, Chow said she plans to put forward a motion barring U.S. businesses from any city contracts, adding that currently, 10 per cent of the city's capital budget goes to American companies. 

"Yeah it may hurt our pockets, it may cost more if we don't buy Canadian," Chow told reporters. "As proud Canadians, I think we are united in saying we will never back down."

The mayor's announcement came shortly before U.S. President Donald Trump paused tariffs on Canadian goods once again until April 2, this time for exports that are compliant with the Canada-U.S.-Mexico Agreement (CUSMA).

Chow's office confirmed Friday the city will still move forward with a motion to ban U.S. contracts, saying "a pause is insufficient" and all tariff threats need to be taken off the table.  

Chow said that contracts above $353,000 need to be open to bids from other countries because of a pre-existing trade deal with European nations, and so Canada needs to consider bids from international companies that exceed that figure.

When asked how the move will affect current contracts that the city has already granted, Chow said officials haven't done a clear analysis because of the delays on tariffs being enacted, with the most recent pause announced Wednesday for the auto industry.

Chow's announcement comes after she assembled a 13-member team of business and labour leaders last month to advise the city on its tariff response. She said the city is also eyeing grants for small businesses and other incentives to make them more successful in face of economic uncertainty. 

"We are working together with a Team Canada approach and buying Canadian whenever possible," she said. 

As she broke the news of the city's tariff response at the TTC Hillcrest Complex, Chow also announced the space will serve as a streetcar storage and maintenance facility for 25 of the 60 new streetcars the city is getting.