Toronto Approves Economic Action Plan to Counter U.S. Tariffs

March 26, 2025 News Room 0 Comments 2 min read

Toronto – Toronto City Council has voted in favour of a sweeping new Economic Action Plan aimed at shielding local businesses and workers from the fallout of looming U.S. tariffs set to take effect next week.

The plan, approved during today’s council meeting, responds directly to the U.S. government’s announcement of a 25 per cent tariff on Canadian products and a 10 per cent tariff on energy exports. These tariffs are scheduled to come into force on Wednesday, April 2, and are expected to have wide-reaching impacts on Toronto’s export-driven economy.

Mayor Olivia Chow’s Economic Action Plan includes 10 targeted measures, with a focus on protecting vulnerable industries, strengthening local supply chains, and boosting support for Toronto-made goods. The measures are designed as both a short-term economic buffer and a long-term strategic shift in local procurement and production.

Among the key initiatives:

Revised procurement policies to favour Canadian suppliers, including new restrictions that will allow the City to exclude U.S.-based suppliers from certain municipal contracts.
A six-month Industrial Property Tax Deferral Program giving eligible industrial property owners until November 30 to pay taxes without penalties or interest.
Expanded support for the city’s manufacturing sector, including a new one-window concierge service and a media campaign promoting Toronto-made products.
Partnerships with other municipalities, Supply Ontario, and federal agencies to reduce dependence on U.S. supply chains and open access to other international markets.

City staff have also been directed to curtail daily operational spending on U.S.-based products and services where local alternatives are available.

The plan is built on the City’s long-term economic development framework, Sidewalks to Skylines: An Action Plan for Toronto’s Economy (2025–2035), and reflects input from the Mayor’s Economic Action Team—an advisory group comprised of business and labour leaders.

This latest move comes on the heels of the City’s Love Local campaign, which launched last week to rally consumer support for Toronto’s small businesses and Canadian-made goods.

City Council will receive a progress update in July, with ongoing reporting on key milestones.

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