HomeMy WebLinkAboutCAO-2025-135 - City of Kitchener Response to U.S. Tariffs and TradeStaff Report
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Chief Administrator's Office www.kitchener.ca
REPORT TO: Special Council
DATE OF MEETING: March 17, 2025
SUBMITTED BY: Dan Chapman, Chief Administrative Officer
PREPARED BY: Justin Watkins, Manager of Corporate Planning
WARD(S) INVOLVED: All
DATE OF REPORT: March 4, 2025
REPORT NO.: CAO -2025-135
SUBJECT: City of Kitchener Response to U.S. Tariffs and Trade
RECOMMENDATION:
For information.
REPORT HIGHLIGHTS:
• The purpose of this report is to inform council of a staff presentation it will receive on March
17, in support of its February 10 resolution on tariffs and trade relations with the United
States.
• There are no financial implications associated with this report.
• Community engagement included posting this report to the City's website with the agenda
in advance of the committee meeting.
• This report supports the delivery of core services.
BACKGROUND:
Given recent economic uncertainties between the United States of America and Canada, on
February 10 council unanimously approved a resolution directing staff to minimize tariff impacts
on City of Kitchener operations and to implement actions in support of our local economy. Based
on the urgency of council's resolution, a City of Kitchener Tariff and Trade Task Force was
constituted to facilitate key deliverables in a timely and effective manner.
REPORT:
On March 4, U.S. President Trump proceeded with his decision to implement a 25 percent
economy -wide tariff on products imported from Canada. Council's resolution directed staff to
report back with an update on the actions of its resolution, should tariffs come into effect, at the
earliest possible meeting of council.
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
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During the Special Council meeting on March 17, a staff presentation will be provided to council
on work undertaken to -date by the Tariff and Trade Task Force, in support of council's February
10 resolution.
STRATEGIC PLAN ALIGNMENT:
This report supports the delivery of core services.
FINANCIAL IMPLICATIONS:
Capital Budget — The recommendation has no impact on the Capital Budget.
Operating Budget — The recommendation has no impact on the Operating Budget.
COMMUNITY ENGAGEMENT:
INFORM — This report has been posted to the City's website with the agenda in advance of the
council / committee meeting.
PREVIOUS REPORTS/AUTHORITIES:
Notice of Motion - United States of America - Proposed Tariffs - Mayor B. Vrbanovic (Monday,
February 10, 2025)
APPROVED BY: Dan Chapman, CAO
ATTACHMENTS: Council Resolution - United States of America - Proposed Tariffs (Monday,
February 10, 2025)
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City of Kitchener
Resolution Page
Special Council Meeting
Title: Notice of Motion - United States of America - Proposed Tarrifs - Mayor B.
Vrbanovic
Date: Monday, February 10, 2025
Moved by Mayor B. Vrbanovic
Seconded by Councillor S. Davey
"WHEREAS the City of Kitchener and the communities within our region are home to a strong
and vibrant economy, including vital small businesses, large Canadian -owned companies and
diverse international firms that create good paying jobs locally; and,
WHEREAS the vibrancy and success of our economy is, in part, reflective of our country's long-
standing economic ties with and proximity to the United States of America; and,
WHEREAS the City of Kitchener's procurement by-law establishes rules that ensure taxpayer
value, protects the City's financial interests, and encourages competitive bidding in the
purchasing of goods and services; and,
WHEREAS in Ontario, procurement practices are required to comply with all applicable trade
agreements, laws and regulations, including the practice of reciprocal non-discrimination and
geographic neutrality with respect to Ontario's trading partners; and,
WHEREAS Canada currently has 15 free trade agreements with 51 different countries, including
the Canada -United States -Mexico Agreement which has created the largest free trade region in
the world; and,
WHEREAS Canada is the top customer for goods and services exports from the United States
and a critical supplier of goods and services integral to the Unites States' economy; and,
WHEREAS on February 1, 2025, the President of the United States issued an executive order to
impose new tariffs on Canadian imports, effective February 4, 2025; and,
WHEREAS on February 1, 2025, the Government of Canada announced countermeasure tariffs
against the United States, effective February 4, 2025; and,
WHEREAS on February 3, 2025, the Prime Minister announced that Canada and the United
States had agreed to delay respective tariffs on imported goods for a period of 30 days;
THEREFORE BE IT RESOLVED that staff be directed to examine opportunities to minimize the
impact of tariffs and countermeasure tariffs on the City of Kitchener, including opportunities where
it is legally permissible for the municipality to pursue a Buy Canadian preference in the
procurement of goods and services; and,
THEREFORE BE IT FURTHER RESOLVED that the Mayor work with the CAO and economic
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development staff to work in partnership with local businesses, area municipalities and
associations on a shared action plan to support our local economy, in the event tariffs are levied
against Canada by the United States in the short-term; and,
THEREFORE BE IT FURTHER RESOLVED that the Mayor, CAO and Executive Director of
Economic Development work with Waterloo Region Economic Development Corporation and
their municipal counterparts nationally and provincially to advocate for and support the elimination
of inter -provincial trade barriers and the diversification of trading partners globally; and,
THEREFORE BE IT FURTHER RESOLVED that the City of Kitchener call on the Province of
Ontario to provide clear and timely guidance to municipalities on the status of the trade
agreement with the United States, including any implications for procurement practices by
municipalities, should tariffs come into effect; and,
THEREFORE BE IT FURTHER RESOLVED that the City of Kitchener, in conjunction with the
Mayor and Council, as appropriate, support the Federation of Canadian Municipalities (FCM),
FCM's Big Cities Mayors' Caucus, the Association of Municipalities of Ontario, and Ontario's Big
City Mayors in advocacy efforts on trade, tariffs and stimulus funding; and,
THEREFORE BE IT FURTHER RESOLVED that the City of Kitchener support the federal,
provincial and territorial governments in its Team Canada approach to trade negotiations with the
United States, supporting calls for the elimination of interprovincial trade barriers within Canada,
and supporting a more diversified global trade strategy; and,
THEREFORE BE IT FURTHER RESOLVED that the City of Kitchener, in addition to its own
procurement strategies work with community partners including the Greater KW Chamber of
Commerce, the Kitchener Downtown BIA, the Belmont Village BIA and others to encourage
residents and businesses to Buy Canadian, and Buy Local where possible; and,
THEREFORE BE IT FINALLY RESOLVED that staff be directed to report back with an update on
the actions of this motion, should tariffs come into effect, at the earliest possible meeting of
council."
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