City of Calgary Prepares for Potential Tariff Impacts on Operations

In light of a recent 30-day pause on tariffs imposed by the United States, the City of Calgary is proactively examining how these levies and possible retaliatory measures might affect its operations.

City officials have expressed concerns that if tariffs are implemented next month, there could be various impacts such as fluctuations in prices, changes in product availability, and potential delays in the supply chain.

In a statement, the city administration remarked, "We remain resilient and are prepared to address challenges that may arise from U.S. tariffs and any reciprocal tariffs that Canada may implement. We will continue to extend projections as more information becomes available."

Calgary's Mayor Jyoti Gondek, who is scheduled to meet with Canada's major city mayors in Ottawa regarding tariffs, emphasized the city's vulnerability to these threats. She stated, “It is possible that some of the chemicals we use to treat the water is supplied to us from the U.S. There is an exhaustive list of things our administration is looking at so we can understand the full implications.”

Further complicating the situation, the Calgary Construction Association (CCA) highlighted that pinpointing specific impacts of the tariffs is challenging, largely due to the intertwined nature of supply chains across the Canada-U.S. border. CCA president Bill Black explained, "It is so intensely integrated that it’s actually very difficult to identify specifics because they’re buried in the way we’ve operated for so long. For example, aluminum can leave Canada, be processed in the U.S. into products like glazing mullions, and then be shipped back into Canada."

David Cooper, a principal at Leading Mobility, noted that local municipalities may struggle with the procurement of specialized equipment, such as transit buses, indicating that the supply chain involves many components that travel back and forth across the border.

The City of Calgary has reportedly initiated several measures in anticipation of potential tariffs, although specific details about these actions remain undisclosed.

As various city projects progress through different stages of procurement—such as the Event Centre and the Green Line LRT—Black offered some assurance: he does not foresee immediate impacts on the Scotia Place project, which is already underway. He mentioned, “We have time, we have a 30-day delay now, these projects are in planning. We have recommended that owners should exclude tariffs when they’re submitting pricing since the industry will not take the tariff risk.”

Ward 7 Councillor Terry Wong emphasized the importance of effective procurement management to keep city projects on budget, stating that city administration is working closely with stakeholders to understand the cost implications of the tariffs. He suggested, “From a procurement perspective, perhaps we could look at procurement across Canada rather than going stateside.”

While the City of Calgary remains determined to secure the best value for its public funds, it is still uncertain whether the anticipated impacts of tariffs will be felt if a resolution is reached within the next 30 days.

Calgary, Tariffs, Government