Toronto Launches Mayor's Economic Action Plan in Response to United States Tariffs

This week, the City of Toronto launched the Mayor’s Economic Action Plan in Response to United States Tariffs (the Plan), which will be implemented over the next 30 days. According to the Toronto Region Board of Trade (TRBOT), trade between Ontario and the United States alone is valued at around $500 billion each year. As the Province’s economic engine, Toronto accounts for 25% of Ontario’s GDP and facilitates approximately $123 billion in annual trade with the U.S. As the trade war between the United States and Canada continues to evolve rapidly, the Plan emphasizes the need to be both flexible and nimble in order to provide effective support.  

For your benefit, we have highlighted the most pertinent components of the proposed Plan below:  

• Limiting U.S.-based companies from bidding on Toronto procurement projects for as long as retaliatory tariffs are imposed by the Federal government. Following City Council approval on March 26, 2025, only Canadian companies will be permitted to bid on new competitive procurement contracts for goods and services valued under $353,000 and construction contracts valued under $8.8 million, based on the thresholds established under the Canada-European Union Comprehensive Economic and Trade Agreement (CETA). Retroactive to March 7, 2025, the City will give preference to bids from Canadian, EU, and UK-based businesses for procurements over these thresholds. American suppliers may also be ineligible to bid on competitive solicitations if it is deemed not to be in the best interest of the City, at the City Manager’s discretion. The City will also establish industry-specific supplier outreach sessions to seek out Canadian alternatives for all City divisions, such as construction materials, technology, municipal water equipment, and paramedic supplies.

• Providing a six-month property tax deferral (covering June-November 2025) for eligible properties in the industrial property tax class. Applications will be accepted between June 1, 2025 and October 31, 2025, and must be accompanied by documentation demonstrating tariff-related financial hardship. Applications approved before July 31, 2025 will be eligible to have late payment penalties and/or interest amounts added to the tax account in June and July waived, as well as any penalties or interest incurred up to November 30, 2025.

• Supporting local and Canadian businesses through a “Love Local” Campaign. The Campaign, which launches later this month, will include activations across the city, partnering with the Toronto Made Market to profile local suppliers, and promotion of ‘buy local’ options through Business Improvement Areas and the City’s website.

• Providing dedicated supports and launching a promotional campaign for Toronto’s manufacturing and industrial sector. The City will create a one-window concierge service for all Toronto businesses, while intensifying business retention and expansion efforts with the most at-risk businesses. Working with industry partners, the City will also launch a promotional media campaign celebrating Toronto’s manufacturing sector.  
  Working with other Toronto-region municipalities to aggregate procurement and reduce reliance on U.S.-based suppliers. The City’s goal is to establish a common approach favouring Canadian and non-U.S. businesses in procurement.

• Working with Toronto Global, Global Affairs Canada, and foreign Consulates in Toronto to drive business engagement as well as increase export and investment opportunities. Toronto will also lead trade missions to high impact global trade events, such as Hannover Messe in Germany – the world’s largest advanced manufacturing event – which will take place later this month.

• Helping Toronto businesses increase competitiveness by supporting the adoption of new technology. For example, the City will launch the Mayor’s Innovation Challenge to support small and medium businesses adopting AI technology and driving growth.

The Mayor’s Economic Action Plan in Response to United States Tariffs was approved by Toronto’s Executive Committee yesterday and will be considered by City Council on March 26, where we anticipate it will be broadly supported.