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OPINION: Municipalities Must Brace for the Turbulence of New Tariffs


The Peace Arch at the Border Between Surrey, British Columbia, Canada and Blaine, Washington, USA
The Peace Arch at the Border Between Surrey, British Columbia, Canada and Blaine, Washington, USA

This weekend, a seismic shift shook Canada’s trade relationship with its southern neighbour. The United States imposed a 25 percent tariff on all goods entering the country from Canada and a 10 percent tariff on oil and gas.


The news spread rapidly, igniting discussions across kitchen tables, council chambers, and social media feeds. Canadians responded with characteristic patriotism—expressing love for their country and pledging to support Canadian-made products.


While the spirited declarations of pride are heartening, it’s time for a sobering reality check. Social media posts are important, but what truly matters is how we act beyond the digital realm. As the economic implications of these tariffs take shape, it’s clear that municipalities, often overlooked in international trade discussions, will be on the frontlines of this battle. The journey to resilience and adaptation starts with local governments, and many municipalities have already taken their first steps.


In Barons, Alberta—a small village known to film enthusiasts as the original setting for Smallville in the 1979 Superman film—Councillor Clinton Bishop announced over the weekend that he would be asking the village administration to remove the American flag at the village entrance. Some may dismiss this as purely symbolic, but symbolism matters. It signals a shift in mindset, a readiness to assert Canadian identity and economic independence.


Similarly, Burlington, Ontario took a proactive approach even before the tariffs were imposed. The city council passed a resolution urging federal and provincial governments to remove trade barriers between provinces and to lift restrictions that prevent municipalities from prioritizing Canadian companies for capital projects and supplies. This move was echoed by Barrie, Ontario, where Mayor Alex Nuttall acknowledged the complexities of trade agreements but emphasized the need for municipalities to support Canadian businesses whenever possible.


In Delta, British Columbia, Councillor Dylan Kruger is set to present a motion urging the provincial government to amend procurement legislation to allow municipalities to accept bids only from Canadian businesses. This bold move underscores the growing sentiment among local leaders that protecting Canadian interests must be prioritized.


Ontario’s municipal leaders are also stepping up. Regional Councillors Rowena Santos and Chris Leahy are advocating for Canadian municipalities to block American companies from bidding on municipal contracts if the U.S. tariffs remain in place. “My motion is a shot across the bow,” said Councillor Santos. “But if the Trump administration goes forward with its proposed tariffs, we should shoot for the hull of their boat, not just the bow.”


These calls for legislative changes represent a shift in municipal governance, where local leaders are stepping beyond traditional roles to protect their communities from international economic threats.


Border municipalities are uniquely positioned to feel the brunt of these tariffs. Windsor, Ontario, which shares a border with Detroit, Michigan, is already taking steps to address the impending challenges.


Mayor Drew Dilkens is chairing a new Border Alliance, bringing together municipalities from across Canada, including Brockville and Fort Frances in Ontario, Surrey, Nelson, and Langley in British Columbia, and St. Stephen and Edmundston in New Brunswick.


However, the somewhat absence of rural municipalities from provinces like Manitoba, Saskatchewan, and Alberta in this alliance raises questions. These regions, heavily reliant on trade with the U.S., are likely to face significant economic impacts.


Their inclusion in the Border Alliance would strengthen collective efforts to navigate the turbulence ahead. Now, I could be wrong and there are rural and western Municipalities involved but I can't find any mention of it on the old search engines. I've reached out to Mayor Dilkens’ office to understand the alliance’s plans and inclusivity efforts would provide valuable insights. We are hoping to have a show this week if the Mayor grants one.

Former Federation of Canadian Municipalities (FCM) President Scott Pearce aptly described municipalities as the “government of proximity.” They are closest to the people and acutely aware of the impacts of federal, provincial, and international policies. As such, municipalities are uniquely positioned to lead adaptive strategies in response to the tariffs.


Municipalities are playing the long game, recognizing that the tariffs are not just about numbers on a balance sheet. They represent potential business losses, spikes in unemployment, and the erosion of local economies. By taking proactive steps, municipalities are not only protecting their communities but also contributing to a stronger and more self-reliant Canada.


The journey toward economic resilience requires a “Made in Canada” approach, and municipalities are leading the charge. From symbolic gestures to legislative advocacy, local governments are demonstrating that they are not content to be passive bystanders in this trade war. They are taking action to protect their residents and economies.


The challenges ahead are daunting. A 25 percent tariff on Canadian goods and a 10 percent tariff on oil and gas will have far-reaching implications. Municipalities must brace for potential disruptions in trade, supply chain issues, and economic instability. But they are not alone.


The strength of Canada lies in its communities, and municipalities are proving that they are up to the task of navigating these turbulent times. From Barons, Alberta, to Burlington, Ontario, and Delta, British Columbia, local leaders are taking bold steps to protect their communities and the Canadian economy.


As this journey unfolds, municipalities must continue collaborating, sharing best practices, and advocating for policy changes that support Canadian businesses. The road ahead will be challenging, but Canada is stronger together.


Municipalities may not always be the first level of government that comes to mind when discussing international trade issues, but their role is indispensable. They are the boots on the ground, seeing firsthand the impacts of federal and international decisions. By stepping up and leading the charge, municipalities are not only safeguarding their communities but also contributing to a brighter and more resilient Canada.


To those municipal leaders taking the first steps, remember: you are not alone. Your efforts are part of a larger journey to protect and strengthen the Canadian economy.


Together, we will weather this storm and emerge stronger on the other side.

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