March 7, 2025 Newsletter

A Message from Councillor King

Dear Residents:

Ottawa residents and businesses entered a new economic reality this week as the United States implemented 25 percent tariffs against Canadian goods this past Tuesday. However, in a development that has only added to the confusion, President Trump announced a one-month pause yesterday on these tariffs for goods from Canada and Mexico that are covered under our free trade agreement. This policy reversal has created significant chaos and uncertainty across our economic landscape.

The implications for Ottawa are particularly significant given our deep trade relationships with the United States. According to Statistics Canada data, more than $16.2 billion in goods were imported to the national capital region in 2023, with more than $8 billion of that total—nearly half of all imports—originating from the U.S. This substantial trade volume means even temporary tariff threats create widespread economic anxiety among local businesses and consumers, despite the region’s overall stability that derives from being the federal seat of government.

Tariffs, at their core, function as taxes on imported goods. However, unlike traditional taxation, these costs ripple through supply chains in ways that affect everyone. When a business imports goods subject to tariffs, they inevitably pass those increased costs to consumers through higher prices. While temporarily paused for some goods, the uncertainty around which items are covered and how long the pause will last has left many Ottawa businesses unable to make confident decisions about pricing, inventory, and future planning.

The economic consequences of this uncertainty for our community are already becoming apparent. Local businesses that export to American markets now face confusion about their competitive position, with many unsure whether their products will face tariffs after the one-month pause expires. This unpredictability makes it nearly impossible to develop sustainable business strategies, potentially leading to delayed investments and cautious hiring practices.

Similarly, Ottawa businesses that rely on American products or components now face incredible challenges. With $8 billion in U.S. imports potentially affected, many local retailers and manufacturers must decide whether to order inventory at potentially higher future costs or reduce orders to minimize risk. Either approach creates unnecessary economic strain on our already-challenged retail and service sectors.

Consumers feel these effects directly through market uncertainty and potential price increases across various product categories. Everything from groceries to electronics, automobiles to construction materials may become more expensive if the tariffs are fully implemented after the pause expires. This environment of economic uncertainty serves no productive purpose—it merely creates financial anxiety between trading partners who have historically benefited from cooperation.

The City of Ottawa has recognized these challenges and proactively established resources to help residents and businesses understand and navigate the confusing tariff situation. The City has created a tariff toolkit to assist local businesses. 

Also working alongside organizations like the Ottawa Board of Trade, Invest Ottawa, and the Canadian Federation of Independent Business, the City is creating support networks and information channels to minimize economic disruption during this chaotic period.

This cooperative approach highlights the importance of community solidarity during unpredictable trade disputes. By supporting local businesses—particularly those vulnerable to tariff impacts—Ottawa residents can help maintain our economic resilience. Choosing local products where possible, sharing positive experiences with Ottawa businesses, and providing supportive reviews all help mitigate the artificial disadvantages created by tariff uncertainty.

However, community support alone cannot fully offset the damage caused by unpredictable trade policies. The fundamental solution requires diplomatic stability and a return to mutually beneficial, predictable trade relationships. The historic economic partnership between Canada and the United States has created prosperity on both sides of the border—prosperity now threatened by erratic policies that ultimately harm consumers and businesses in both nations.

As we navigate the immediate effects of this confusing tariff implementation and temporary pause, the Mayor and Council remain committed to advocating for Ottawa's economic interests and supporting initiatives that build resilience against these external trade pressures. Last month, Council approved a motion to ensure that the City’s procurement by-laws and processes are flexible and support the purchase of local, Canadian, and non-American goods and services wherever possible. City staff have already done some work and, moving forward, any procurement under $125,000 will require that at least one of the three required bids will be from a local supplier.

Economic Development Services at the City of Ottawa has also developed a “Shop Local. Buy Canadian.” campaign to mobilize residents and encourage their continued support for local businesses and Canadian products and services. The campaign is launching this week and will run for approximately eight weeks in English and French. It will includes a combination of digital advertising on Canadian news websites (CBC, Postmedia, LeDroit and Radio-Canada) and on Meta social channels. Advertising is a key component of the plan and campaign messaging will include storefront window clings that will be distributed to local businesses throughout the City’s 18 Business Improvement Areas.

The current situation represents an unnecessary disruption to economic cooperation that has served both nations well for generations. By staying informed, supporting local businesses, and advocating for sensible trade policies, Ottawa residents can help weather these challenging circumstances while working toward a more stable economic future—one built on cooperation rather than arbitrary and unpredictable trade barriers.

Rawlson King,
City Councillor