City council unanimously backs restricting U.S. companies from bidding on Toronto contracts

Toronto Mayor Olivia Chow says the city needs to push ahead with measures to bolster the local economy regardless of what Donald Trump does on April 2, when the U.S. president has threatened to bring in new sectoral tariffs.

Council unanimously backed Chow's 10-point plan to respond to the tariff fight on Wednesday, though some councillors said the city needs to be careful not to alienate potential visitors from the U.S., or American companies looking to invest in Toronto.

The plan restricts the city's procurement from American companies, with some wiggle room if needed. Chow's plan, developed with a team of industry leaders, would also allow industrial property owners to have their taxes deferred should their business take a hit due to an escalating trade war. 

Torontonians can also expect to see city hall pushing a buy local agenda, and Chow said city staff are being urged to avoid using American-based ride-hailing apps or ordering things on Amazon. 

This is all happening before Trump levies more tariffs. Would Toronto back off if Trump does? Chow said it will drop the sanctions when all three levels of government are convinced the trade relationship has gone back to normal. 

"We will stop fighting back if there's stability and peace on the land, but it's hard to believe," Chow told reporters, adding it's impossible to read Trump's mind.

Canada's largest city awarded about 10 per cent of its contracts to American companies in the last two years, according to a CBC analysis. The hope now is to find local suppliers for as much of that work as is possible, which could stimulate an economy dented by the tariffs. 

However, city staff confirmed at this point it's unclear how much this move will cost and whether it might hike tax bills in the future, a concern Chow played down during remarks earlier in the day. 

No current contracts with American companies will be torn up. 

Colin Mang, an economist at McMaster University, said Toronto's move won't have a significant affect on international trade relations. But it's still an important symbolic move, he said.  

"The city is sending a signal to Canadian families and Canadian workers that tax money paid by Toronto residents is going to stay here in Canada, that it's going to support Canadian jobs, it's going to support the Canadian economy," Mang said. 

"I think it's the right decision to make."

One major concern on the council floor was not alienating Americans who are still visiting the city — including during the upcoming FIFA World Cup — or considering investing here. 

"Economic nationalism as a response to economic nationalism creates all kinds of problems," Coun. James Pasternak said on the council floor.