The City of Calgary is taking steps to insulate itself from the impact of potential US tariffs, with a review of purchasing and potential business permit fee reductions.

Mayor Jyoti Gondek met with reporters at historic city hall Thursday to discuss the efforts being made to limit the upheaval potential tariffs may have on City of Calgary operations.

US President Donald Trump has been rattling the tariff sabre for weeks now, backing off an initial date of Feb. 1 as both Canada and Mexico agreed to take steps to stop the flow of illegal immigration and illicit drug flow across borders.  President Trump has tentatively set sweeping tariffs for the start of March, with March 12 for steel and aluminum tariffs, and now April 2 for 25 per cent tariff on out-of-country automobiles.

The City of Calgary has already begun to take pre-emptive action on some projects, with the Scotia Place Event Centre team saying they’re sourcing non-US products to meet construction obligations on that $1.25 billion arena project.

Mayor Gondek said that they’re taking action to protect Calgary taxpayers and local businesses. That includes reviewing city procurement practices and looking at fee relief on permits.

“We need to do this work now, whether tariffs are immediately implemented or the threats continue to be prolonged, we must look at this as an opportunity to future-proof our economy and create some long-term stability,” the mayor said.

City administration will be looking at procurement bylaws to eliminate bottlenecks or barriers, Mayor Gondek said.

They will also examine purchasing non-US products that support the local supply chain.

“We need to give businesses the comfort of knowing that we are looking at relief measures, possibly like permit fee reductions, expedited approval processes and other measures that can lessen the impact of tariffs,” the mayor said.

“Now is the time to cut any unnecessary red tape and remove financial barriers wherever we can.”

Tariff advisory group to be struck

Deborah Yedlin with the Calgary Chamber of Commerce and Brad Parry with Calgary Economic Development will be at the next Calgary city council meeting to provide insight into the potential impact of tariffs on local business prospects.

The Chamber published a response to potential tariffs on Feb. 1, and it called for a three-pronged strategy to respond to the economic pressures. In it, CEO Yedlin advocated for diplomacy, not retaliation.

“We have been clear: tariffs are bad economic policy — whether imposed by the U.S. or as retaliation — with the consequences borne by Canadians, Americans and businesses on both sides of the border,” Yedlin said.

“We strongly encourage the federal government to focus on diplomacy and de-escalation and avoid further blows to our economy through retaliation.”

For his part, Parry said the tariff talks have spooked people, but they’re seeing both sides of the coin. His comments came as Calgary locked up hundreds of millions in venture capital in 2024.

Mayor Gondek said that Calgary business leaders will convene a Mayor’s Tariff Advisory Group with the first meeting scheduled for Feb. 21.

“I struck this group as the city needs to hear directly from business leaders on how we can help,” she said.

“We need to know what supports are needed from the city by tariff-impacted businesses.”

Mayor Gondek said that it was too early to say what direct impact potential tariffs might have on capital projects – from the Event Centre to the Green Line – or, what it might mean for City of Calgary operations.  They’ll review the impact on ongoing capital projects in the coming days and weeks.

For now, they’re strategizing.

“We’re working towards a Team Calgary approach, protecting our taxpayers, our businesses and our regional neighbours,” Mayor Gondek said.

“We are stronger together, and together we will navigate through these challenges for a stable and prosperous future.”