Toronto's mayor proposes tariff response plan to council

Toronto's city council is set to vote on Mayor Olivia Chow's tariff response plan this week. Some councillors are worried that the plan could burden taxpayers and not provide enough support for local businesses. Chow's proposal aims to limit the city's contracts with American companies, though there are some exceptions. It also includes a program allowing industrial property owners affected by tariffs to delay their tax payments for six months. The plan was revealed last week by Chow while she stood under a large Canadian flag. It passed through her executive committee shortly after, but some councillors have raised concerns. Coun. Josh Matlow expressed worries that the plan was rushed and may not adequately consider the ongoing trade situation. According to a CBC report, around 10% of city contracts awarded in the last two years went to American companies, totaling about $3.2 billion. Matlow questions whether restricting these contracts could raise prices for the city, especially if American firms offer the best deals. City CFO Stephen Conforti assured that there are provisions to continue working with American suppliers when necessary. However, Matlow feels that the lack of clarity around these provisions is concerning, and he questions whether taxpayers might face increased taxes as a result. Another aspect of the mayor's plan is the tax deferral program for affected businesses. Coun. Vincent Crisanti asked if the city would help businesses manage their tax payments after the deferral period, noting that they could still be struggling by the deadline. Criticism of the support for businesses extends beyond the executive committee. In February, Coun. Brad Bradford suggested a 25% tax cut for small businesses to help mitigate the tariff impacts. He argued that while the deferral may aid in the short term, it does not provide sufficient relief in the long run.