Toronto, Canada's largest city, is taking decisive action to guard its economy against the uncertainties posed by U.S. President Donald Trump’s trade war. On March 17, 2025, Mayor Olivia Chow, accompanied by her economic action team, unveiled an ambitious plan containing 10 key measures aimed at supporting local businesses and workers during these tumultuous times.
The proposed actions are set to roll out over the next 30 days, reflecting immediate relief measures aimed at mitigating the adverse impacts of U.S. tariffs and protectionist policies. Canada is facing a senseless, harmful trade war. People are feeling anxious. They’re worried about their jobs, the cost of food, the cost of living, said Chow during the press conference. Her statements highlight the urgent need for action amid growing economic pressures from the south.
Among the significant measures included in the action plan is the prioritization of Canadian suppliers in city procurement processes. For competitive contracts valued under $353,000 for goods and services, and for construction contracts under $8.8 million, the city will restrict bids exclusively to Canadian businesses. This move is intended to bolster the local economy and encourage spending within Canadian borders.
Another highlight from the action plan is the provision for industrial property owners to defer their tax payments for six months, aimed at easing cash flow challenges. Payments for these properties will be postponed from June 1 to November 30, 2025, during which no penalties or interest will accrue on late payments. The city anticipates this initiative will cost between $300,000 and $750,000, supporting those most impacted by recent trade tensions.
This action plan also features the launch of the “Love Local” campaign, encouraging residents to choose Canadian-made products. Chow emphasized the importance of community support by stating, We will stand united as proud Canadians, and Toronto will emerge stronger than ever. Such campaigns aim not just to maintain local business viability but also to evoke a sense of national pride amid external pressures.
Toronto's proactive stance aligns with similar initiatives taken by governments at provincial and federal levels. Following Trump’s threats, including the potential for steep tariffs on Canadian imports, Ottawa initially imposed countermeasures, including 25 percent tariffs on $30 billion worth of American goods.
Local municipalities are also taking steps to limit economic interactions with the U.S. Vaughan, just north of Toronto, has already enacted policies banning U.S. suppliers from bidding on municipal contracts. The government of Ontario paused surcharges on electricity exports to three U.S. states, signaling their resolve amid this trade standoff.
Meanwhile, the political environment complicates matters, as Trump continues to propel narratives belittling Canada, at one point even calling for Canada to be the US's 51st state. These remarks strain diplomatic ties and heighten anxieties within Canada, necessitating strong local responses to counterbalance U.S. actions.
Across the border, there is no sign of immediate relief from economic pressures, as Washington has implemented only temporary reprieves for targeted nations amid relentless negotiations. Although Trump's foreign policy decisions shift frequently, fear among Canadian enterprises persists, prompting city leaders to act.
Toronto Fire Services has committed to purchasing 17 fire trucks produced locally, recently abandoning plans for procurement from U.S. manufacturers, which reflects the commitment to support homegrown industries. Chow’s initiative, set to go before the city’s executive committee for approval on March 19, 2025, is poised to address the immediate needs of Torontonians facing uncertainty.
The retail and manufacturing sectors have already voiced support for the city’s measures. Local business owners express cautious optimism, noting the urgency of these efforts could bolster community resilience. Chow’s plan has garnered praise for being timely and necessary, particularly as citizens feel the pinch from increasing costs associated with the trade war.
Still, the future remains uncertain, with many hoping for positive outcomes from continued engagement and negotiations at national levels. Both Mayor Chow and provincial officials are invoking collective strength and unity to face these challenges head-on.
Significantly, the outcome of Toronto’s strategies may affect broader public sentiment toward both the local economy and its role within the larger Canadian federation as various municipal governments create similar responses. Through coordinated efforts, Canadian cities aim to cultivate insulation from adverse external economic forces.
Toronto’s bold measures serve as both a shield for its economy and as motivation for residents to rally around local enterprises, fostering solidarity amid external threats. The actions being taken by Mayor Chow are emblematic of how communities can advocate for themselves even when faced with divisive international politics.
