Mayor Olivia Chow escalated Toronto’s response to U.S. President Donald Trump’s tariffs on Monday.
Standing in front of a Canadian flag nearly four storeys tall, Chow unveiled an updated plan that included new measures such as providing property tax relief for the city’s manufacturing sector.
“This plan outlines a series of actions we will fulfill over the next 30 days,” Chow said. “And it will create a more resilient economy so we can emerge from this trade war stronger and more united.”
The marquee new measure will give industrial properties a temporary break on their property taxes.
If approved by council, the city would give a six-month property tax holiday from June 1 to Nov. 30, 2025, “giving affected businesses needed flexibility," Chow said.
There are just over 2,000 industrial properties in Toronto, and the reprieve is expected to provide an average of $28,600 in savings to each eligible business.
Business owners will have to apply and “demonstrate to the city that they are actually impacted by the tariffs,” said Stephen Conforti, Toronto’s chief financial officer.
It’s not clear if the city could extend that relief into 2026 because municipalities aren’t allowed to run deficits, and an extended deferral could affect the city’s budget.
American companies with a Canadian subsidiary in Toronto could also be eligible for the tax relief.
The city’s industrial base has been going through a tough time even before Trump’s tariffs.
A recent city study showed manufacturing was the only sector to lose jobs between 2023 and 2024. During that time, employment declined by one per cent from 128,500 to 127,400.
Over a longer period, the numbers paint an even more grim picture.
In 2019, the city had over 136,000 manufacturing jobs. But in the last six years, Toronto shed over 9,000 jobs in the sector, a drop of nearly seven per cent.
Chow also promised to curtail city employees’ travel to the U.S. and force staff to use local rideshare companies instead of Uber and Lyft.
Many of the other initiatives — like banning American companies from city contracts — have been announced in the past few weeks.
Last week, Chow announced all city contracts for goods and services below $353,000 and construction projects below $8.8 million will go to Canadian firms.
She promised to bring a motion to council to completely bar American suppliers from all city procurement.
In the event of a full ban, companies from countries other than the U.S. would still be able to bid on contracts and do work for the city. This is due to obligations under existing trade agreements, like the Comprehensive Economic and Trade Agreement (CETA) between Canada and the European Union.
CETA allows municipalities to give domestic firms preferential treatment for products and services valued under $353,000, as well as for construction contracts under $8.8 million.
U.S. firms only account for about 10 per cent of Toronto’s annual procurement, according to city manager Paul Johnson. Chow said it’s too early to say how much the new policies and tariffs would cost city coffers, but that any financial pain is worth the price.
A recent report by the Canadian Chamber of Commerce found Toronto is less exposed to tariff risk than the average Canadian municipality.
In February, council also voted to approve a campaign spearheaded by Eglinton-Lawrence Coun. Mike Colle to encourage residents to buy more local goods and a separate measure banning new Teslas from participating in the city’s taxi and limo licensing discount program.
