The U.S. and President Donald Trump has slapped a 15 per cent tariff on all steel and aluminum it receives from Canada, and if that rises to 25 per cent as has been threatened, it will cost more for the city to build its bridges and buildings with steel from the U.S.
Trump tariffs may cost the city $10 million
“We are trying to estimate a worst-case scenario,” said city treasurer Anna Lisa Barbon. “If there is a significant tariff increase, what impact would it have?”
While the tariff is on steel shipped into the U.S., it will drive up the cost of goods made with that steel and sold back to customers in Canada.
The tariff most likely would impact fleet vehicles and equipment, such as fire and police vehicles, new and refurbished buildings and transportation or pathway projects that include bridges, states a report on capital budgets, going to the city’s corporate services committee.
“We are modelling. It depends on where it is sourced,” Barbon said of the steel. “We want to be prepared in case things occur.”