Mayor, Ottawa Board of Trade urge people to buy local in response to U.S. tariffs

Just hours before a trade war was to begin between Canada and the United States, a 30-day pause was issued on tariffs. CTV's Austin Lee reports.

Mayor Mark Sutcliffe wants the City of Ottawa to “prioritize Canadian products and services over American,” with the possibility of a trade war looming over the two countries.

On Saturday, U.S. President Donald Trump imposed an across-the-board 25 per cent tariff on Canadian imports and a 10 per cent tariff on energy, beginning on Tuesday. Prime Minister Justin Trudeau announced counter tariffs on $30 billion in American goods, rising to $155 billion later this month, while Premier Doug Ford said all American liquor will be removed from LCBO shelves and from its online store.

Late Monday afternoon, Trudeau said the imposition of tariffs on Canada would be delayed for 30 days, following a conversation with Trump earlier in the day.

Sutcliffe says he will introduce a motion at Tuesday’s finance and corporate services committee meeting to ensure “our buying decisions at the City of Ottawa prioritize Canadian products and services over American counterparts.”

The mayor did not say how much money the city spends on American products and services.

“The trade war that began with Donald Trump’s tariffs will be harmful to Canada and to Ottawa,” Sutcliffe said in a post on social media Sunday evening.

“We must get Team Ottawa working together to protect our local economy.”

Sutcliffe says the motion will direct staff to examine the areas the city might be spending money with American companies, “and see if there is a Canadian alternative.”

“The City of Ottawa spends a lot of money on products and services and the vast majority of what we spend stays right here in Canada and right here in Ottawa. At the same time, we do buy products from American companies and American subsidiaries,” Sutcliffe told CTV Morning Live.

“We need to support the Canadian economy during this trade war, we need to support the local economy.”

Ford announced Monday Ontario is “banning American companies from provincial contracts” until the U.S. lifts its tariffs on Canadian goods.

“Every year, the Ontario government and its agencies spend $30 billion on procurement, alongside our $200 billion plan to build Ontario,” Ford said in a statement. “U.S.-based businesses will now lose out on tens of billions of dollars in new revenues. They only have President Trump to blame.”

Sutcliffe says there is “a lot of uncertainty” in the Ottawa economy, as the federal government looks at job cuts, and “this trade war adds to that.”

“We have to make sure we can to protect and sustain the local economy.”

• From food and booze, to toilet paper and motorcycles: Here are the U.S. goods Canada is targeting

Sutcliffe says he will be convening a meeting of leaders from Ottawa’s “major business and economic development organizations” to develop an “action plan to support and promote local businesses.”

“Gatineau Mayor Maude Marquis-Bissonnette and I have agreed to speak this week on how we can work together to ensure the economic success of our entire region, including asking the other levels of government to remove interprovincial trade barriers,” Sutcliffe said.

“And the City of Ottawa will continue to invest in growth and progress - building more roads, investing in infrastructure, expanding emergency services - to support the local economy.”

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The Ottawa Board of Trade is encouraging Ottawa residents to “strengthen our own economy,” by supporting “local and Canadian products and services whenever possible.”

The board issued a statement on Sunday following the announcement by the U.S. president, saying it stands with the Canadian Chamber of Commerce in denouncing the tariffs.

“The Trump tariffs are unreasonable and will significantly increase costs, disrupting deeply integrated supply chains that cannot be unwound without severe economic damage to both nations,” the board said in a statement. “These developments will have far-reaching consequences for businesses and families on both sides of the border, and we are committed to mitigating their impact.”

• LCBO pulling American alcohol from its shelves on Tuesday

The Ottawa Board of Trade says it’s working with business leaders in Ottawa and across the country to “strengthen our competitive edge.” It calls on residents and consumers to:

• “Strengthen our own economy, support local and Canadian products and services whenever possible,” the board said.
• Highlight the innovation, diversity and determination of our businesses and community
• “Spread the truth, these tariffs are unjustified and determinantal to businesses and workers in both countries,” the statement said.

The Board of Trade is calling on governments at all levels to look at every option for “increasing our competitiveness and productivity.”

“The Ottawa Board of Trade remains steadfast in advocating for effective policies, providing resources, and supporting our business community through these challenges,” the board said. “Together, we will navigate this period of uncertainty and emerge stronger. Now, more than ever, let’s stand united as Team Ottawa and Team Canada.”

President and CEO of the Ottawa Board of Trade, Sueling Ching, said Monday regardless of where things go from here, Canadians should shop local.

“Our consumer dollar is very powerful,” she says.

“More than that, I think it’s a message that we need to be sharing among ourselves and externally, that we are committed to being united.”

Ching adds that the threat of tariffs and the risks they pose to the nation’s economy highlight efforts the Ottawa Board of Trade and the Canadian Chamber of Commerce have been calling for since before Trump re-took the White House.

“We are focused on many policy changes that we have been requesting for some time to try and strengthen our local economy,” she said.

“Things like internal trade barriers, looking at any tax or labour reform that is necessary, and investing in innovative and trade-enabling infrastructure as well.”

Ching says the current situation has prompted a palpable sense of urgency for increasing productivity and removing red tape facing entrepreneurs.

“There’s a real speeding up of those things that we have been talking about, and I think that’s good news,” said Ching.

“The more resilient that we are, the more that we can strengthen our own businesses and our own economy, the better off we will be as we perhaps pursue other trade agreements with other countries outside of the U.S.”

Sutcliffe was asked on CTV Morning Live about his message to Ottawa residents worried about the economy in the weeks and months ahead.

“It’s a tough time and I know why you’re worried, I know why local businesses are worried. It’s been a difficult time in Ottawa and with the prospect, potentially, of federal job cuts or a downturn in the national economy, which would affect Ottawa. This is very worrisome,” Sutcliffe said Monday.

“At the same time, we have great people in our city, we have a Team Ottawa approach – we’ve got everybody working together. There’s never been more collaboration when it comes to economic development to our city. So, we’re going to get the right people around the table, we’re going to work together on solutions, we’re going to continue to invest in the city.”

--With files from CTV News Ottawa’s Austin Lee