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A coalition of Canadian and American mayors is sounding the alarm over sweeping US tariffs on Canadian imports. They warn that the tariffs could devastate regional economies, drive up inflation and threaten hundreds of thousands of jobs on both sides of the border.
As part of the Great Lakes and St. Lawrence Cities Initiative, nine mayors representing more than 270 municipalities across the Great Lakes and St. Lawrence River region held a joint virtual meeting on Wednesday, calling for urgent bilateral cooperation to prevent an all-out trade war. They urged unity and coordinated action to safeguard a “vital regional economy” — one that accounts for more than half of all Canada-US trade and generates over US$6 trillion in activity every year.
President Donald Trump announced new tariffs Wednesday, including a 25 per cent duty on all foreign-made vehicles — including those from Canada — and a 10 per cent baseline tariff on imports from many countries. While Canada is exempt from the baseline, earlier tariffs remain: 25 per cent on Canadian vehicles, steel and aluminum, 10 per cent on energy and potash, and extra levies on goods not covered by the free-trade pact between Canada, the US and Mexico.
In response, Canada announced a 25 per cent retaliatory tariff on US-made vehicles Thursday — a move Prime Minister Mark Carney said would generate $8 billion the government would use to support affected workers and businesses. Carney said the approach was aiming for “maximum impact in the US and minimum impact in Canada.”
Marianne Meed Ward, mayor of Burlington, Ont. — home to several steel manufacturers — told Canada’s National Observer the impact of existing tariffs is already hitting local industry hard, particularly steel companies. The city has more than 8,800 employees and over 230 businesses that will be affected by the steel and aluminum tariffs, according to Environics data shared by the city.
“If this [tariff] continues, it will be devastating for our business,” Meed Ward said. The city could face layoffs, stalled investments, and even business closures, with ripple effects across the local economy as job losses reduce consumer spending, she added.
Meed Ward said US mayors shared the same concerns about the long-term damage of escalating trade tensions. Burlington passed a “Buy Canadian” resolution, using its purchasing power to prioritize Canadian suppliers, particularly for infrastructure projects, Meed Ward said. The resolution also urges the federal government to eliminate interprovincial trade barriers and encourages residents to buy locally.
Canada will need to explore a wide range of responses to the growing trade dispute, including retaliatory tariffs, new trade partnerships and the possibility of renegotiating existing agreements with the US, she said.
Trust in the current trade relationship with the US has been badly eroded proving highly disruptive to both markets and economic planning efforts, Meed Ward said.
“We had a deal — one negotiated and celebrated by this president, who called it the best deal ever — until he suddenly tore it up and imposed tariffs,” she said. “So there’s justifiable wariness. Sure, we could negotiate a new agreement, but will it hold?”
The City of Toronto launched its own 10-point plan to counter the impact of US tariffs, including tax deferrals for affected manufacturers, procurement reforms favouring Canadian-made goods, targeted support for auto parts suppliers, and efforts to expand global markets. The plan also includes a “Local Love” campaign to promote Canadian products and a directive to reduce municipal use of US-based rideshare services like Uber and Lyft, and instead use local taxis.
Pat Tobin, Toronto’s general manager of economic development and culture, told Canada’s National Observer the city is leveraging its $18-billion operating budget to support Canadian firms wherever possible. While only three per cent (approximately $210 million ) of the city’s total procurement currently goes to US companies, “diverting even a portion of that spending into the local economy is meaningful,” Tobin said.
Under the plan, the city will prioritize Canadian businesses by limiting bids on smaller contracts to domestic companies.
Tobin said tariffs on autos, steel and aluminum pose serious challenges for Ontario’s manufacturing base. While Toronto lacks assembly plants, it has many auto parts suppliers tied to the broader supply chain. About 130,000 residents — roughly eight per cent of the city’s workforce — work in manufacturing and warehousing, and many jobs are now at risk.
Across the border, mayors are also up in arms about the impact of tariffs. Austin Bonta, mayor of Portage, Indiana, said nearly $14 billion of export revenue is on the line from steel to auto parts to medical instruments — and Bonta wasn’t alone.
Malik Evans, mayor of Rochester, New York, also expressed his outrage alongside his Canadian counterparts.
“Tariffs will generate regressive cost increases on essential goods and services, delivering the greatest harm on those who can least afford to absorb them.”
Abdul Matin Sarfraz / Canada’s National Observer / Local Journalism Initiative.
Comments
Perhaps those distressed Americans can reflect on their voting choices and understand that they did this to themselves. Nobody is coming to rescue them as their country destroys itself.