City of Calgary administration talked about tariffs and reassured Calgarians of their ability to complete projects amid international trade concerns. 

Councillors at the May 13 Executive Committee meeting received an update on how the U.S. tariffs on steel, automotive products, and aluminum will impact ongoing and future projects across Calgary. 

Amit Patil, the city’s director of supply management, presented the procurement summary. He said that the global tariffs have had little impact on Calgary’s supply chain.

As of March 4, the U.S. imposed a 25 per cent tariff on steel and aluminum, a 10 per cent tariff on energy exports, and a 25 per cent tariff on foreign-made vehicles and parts.

That same day, the Government of Canada responded with retaliatory tariffs. These measures still stand as a 25 per cent tariff on $30 billion worth of goods imported from the U.S.

Mayor Jyoti Gondek praised the procurement team’s efforts and said that the municipal government must not only protect the economy but also advocate for local businesses whose industries are impacted by the tariffs.

“As a corporation, we have a responsibility to Calgarians to make sure that we are keeping our house in order,” she said.

During the meeting, Mayor Gondek reiterated the fire department’s concerns about buying fire trucks and asked Patil if this was included in his analysis. 

Patil cited the federal government’s $2 billion response fund, which outlined a process for receiving back any investment from goods bought under tariffs.

He said that imported products under the fire department and law enforcement services are included under the federal government’s response and that it works not as an exemption, but rather closer to a cash back process. 

“You pay up front and you get the tariffs back from it,” he said. 

Since April, Patil said that the city has been individually reviewing its development projects against a “tariff calculator” to inform of the risks and recommendations involved when moving forward with construction. 

How will the tariffs impact major city projects?

Patil said that Calgary’s projects have experienced scant effects of the tariffs. Believing that this pattern will continue, he said that almost all of the city’s contracts have been signed with Canadian suppliers, and that a majority of those suppliers are either locally or provincially situated 

The presentation highlighted five sizable projects: enlarging the compost facility, upgrading the Fish Creek Wastewater Treatment Plant, building the Pathway and Bikeway Network (5A Program), expanding the Green Line southeast LRT train, and constructing the Scotia Place arena. 

Patil said that the only projects incorporating U.S. materials will be the compost facility and the 5A Network, which will need to use cross-national electrical and sheet metal components, respectively. 

Also subject to needing specialized, non-Canadian supplies will be the Green Line LRT project. Patil said it is expected to start construction later this year to allow time for finding alternative sources to the U.S. 

On track to be completed in fall 2027, Patil said the contractors developing the Scotia Place arena have signed with local steel suppliers. Yet, he said that all of the projects could potentially be impacted by the cost of construction should this inflate. 

Since March, Patil said that the tariffs have had an $11,000 impact on the city. He said that this number could still grow, but that he doesn’t see it becoming a considerable issue. 

“The value may increase, but we expect that to be a minimal increase from where we are currently,” said Patil.

Despite this, he said that the city has effectively re-routed its procurement strategies to avoid sourcing from the U.S. For example, Patil said that they imported a pipe from Mexico to fix the north water feeder main.

“We typically would have gotten that out of the U.S.,” he said.

“That’s a big win for us.”

Gondek said that the fact that there is a procurement group investigating the risks tariffs pose to the city is evidence of them taking the situation seriously to prevent future losses. She said that Calgary’s optimal standing is because of their analysis.

“The team in procurement has been working for a number of years to better understand how we can do more locally,” said Gondek.

“As a result of their work, we happen to be in a very good situation.”