For City of Hamilton staff looking to split from U.S. businesses, things are complicated

Like other Ontario municipalities, the City of Hamilton is looking to stop buying goods and services from American companies during the newly launched trade war. But the process is proving to be more complicated than a simple, sweeping ban, city staff say. 

Procurement staff told Hamilton council on Wednesday that they're working on definitions — such as what makes a company or a good "local" — and possible exemptions, as well as to understand tariff impacts on city operations. 

"There may still be some interest to continue to buy outside of local, outside of Canada," said Mike Zegarac, general manager of finance. 

That's not what some councillors wanted to hear the day after U.S. President Donald Trump placed 25 per cent tariffs on all Canadian goods, with more levies possibly coming for steel and aluminum later this month. 

"Not only is our economic freedom at risk, but also our sovereignty, so the stakes are as high as they could be," said Coun. John-Paul Danko. 

Hamilton should be following Ontario Premier Doug Ford's lead, he said. 

Ford announced Tuesday that American companies would immediately be banned from receiving any new provincial contracts and urged Ontario's 444 municipalities to follow suit. 

Brampton and Mississauga, for instance, are also looking at changes, staff said.

Coun. Brad Clark pushed city staff to take a harder line to avoid striking any new contracts with American companies for construction projects, equipment and services. The city awards about $793 million a year in contracts, according to a staff report.

Clark also urged staff to cancel all travel to the U.S. for conferences and professional development. 

"Every single pushback we have becomes a splinter in the eye of the president and his cabinet," Clark said. 

The City of Hamilton has been trying to decouple itself from U.S. companies since last month after council passed a motion from Mayor Andrea Horwath. 

Horwath will also check with Ford about what he's expecting from municipalities, as council approved in an amendment from Danko on Wednesday. Horwath is in Washington this week to advocate against tariffs and didn't attend the meeting. 

"We understand council's position — we need to take a strong stand and we need to move quickly," said city manager Marnie Cluckie. "We also need to make sure we are doing our due diligence, albeit rapidly."