By Patrick Penner, Local Journalism Initiative Reporter, Tri-Cities Dispatch
March 11, 2025
Municipalities in the Tri-Cities are bracing for the economic fallout of the U.S-Canada trade war.
Both Coquitlam and Port Moody may need to change their policies on procurement, according to the respective city staffs.
“We are anticipating that the tariffs will have direct financial impacts from the increased costs of procuring goods and services and are undertaking work to develop a tariff mitigation strategy,” said Coquitlam’s deputy chief administrative officer Michelle Hunt.
Many Canadian municipalities have started to take measures to mitigate the impact of U.S. tariffs, including shutting out U.S. companies and shifting to domestic suppliers and services.
Recent data from the Federation of Canadian Municipalities (FCM) estimated Canadian municipalities spend a combined $30 billion on U.S. companies through procurement contracts, including $4 billion on imported products, according to recent statements from Rowena Santos, an FCM board member.
Coquitlam’s strategy, Hunt said, will consider the feasibility of diversifying suppliers, and where local products and services can be prioritized. The full details of the plan will likely be released by the end of April, she said.
“We recognize that the United States tariffs will significantly harm the B.C. economy,” Hunt said. “Coquitlam staff are in the process of assessing the impact of the tariffs and are considering ways to mitigate the implications to not only municipal finances, but also to local residents and businesses.”
Similarly, Port Moody city manager Anna Mathewson said staff are consulting with their regional colleagues on a range of issues, including procurement practices. A report on the cost impacts to the city’s procurement is scheduled to be presented to council on March 18.
Port Coquitlam, on the other hand, does not plan to update its procurement practices as it already has a “Canada First” policy, according to Jeffrey Lovel, the city’s director of finance, adding the city has no significant contracts with U.S. companies
He noted virtually all Port Coquitlam purchases (99.8 percent) come from Canadian based companies.
A cursory review of the 2023 schedules of goods and suppliers from all Tri-Cities municipalities shows the vast majority of their direct purchases are from Canadian companies.
How direct spending on U.S.-based companies breaks down between Coquitlam, Port Coquitlam and Port Moody,
The Dispatch was only able to identify around a combined $1.8 million in direct purchases from U.S.-based companies and their subsidiaries.
Most of this spending appears to be IT-related. For instance, Coquitlam spent around $770,000 in 2023 with Microsoft, Oracle, Remix Technologies, InterPro Solutions and Kofax – all of which provide software services.
These purchases, however, do not account for indirect spending on U.S.-made goods through Canadian suppliers, which is likely more substantial.
While there has been no analysis publicly released on the financial impacts to B.C. municipalities, an Oxford Economics report from March 4 estimated U.S. tariffs may increase infrastructure costs for Ontario municipalities by more than $1 billion over the next two years.
Mayors in Ontario have announced strong protectionist measures to the tariffs.
Brampton Mayor Patrick Brown announced a “Made in Canada” policy on March 3, making U.S. companies ineligible to bid on new procurement contracts, and considering cancelling existing agreements.
Metro Vancouver councils announced similar measures in February, before the tariff deadline was extended.
The City of Delta passed a motion calling for the province to amend legislation to allow councils to favour Canadian companies in procurement bids on Feb. 3, and the City of Vancouver’s council unanimously passed a motion Feb. 11 to ensure the city’s contracts are awarded to Canadian businesses wherever possible.
Both Coquitlam and Port Moody said they are also looking to assist local businesses and residents through the Tri-Cities Chamber of Commerce (TCCC).
Mathewson said the city’s economic development division has connected with the chamber to identify local business concerns and potential municipal support.
She noted Port Moody is already a partner with Loco BC, a Vancouver-based non-profit which encourages residents to buy local.
Likewise, Hunt said the city is looking for opportunities to work with local partners and trade organizations to share support.
Candace Laing, president and CEO of TCCC’s parent organization, the Canadian Chamber of Commerce, released a statement on March 4, calling on federal and provincial governments to “double down” to protect the country’s economic sovereignty and security.
She said Canada needs to diversify its trade partners, rework its tax and regulatory schemes, and streamline internal trade between the provinces.
“What we do in this moment can’t be incremental, it must be transformational,” Laing said.
That’s a sentiment that has been shared among most provincial leaders.
On March 6, Premier David Eby announced the province’s response will include new legislation, which includes removing interprovincial trade barriers, mandating low-carbon fuels produced in Canada, adding tolls to U.S. commercial vehicles travelling through B.C., and removing liquor from Republican-led states from BC Liquor stores.
He said their plan will expedite provincial projects to support local industries, and diversify the trade market for B.C. products.
B.C.’s economy may be less impacted by the tariffs than other provinces, as it has been expanding into Asian markets like China and South Korea.
Only 52.8 percent of its goods were exported to the U.S. in 2024, while Alberta exported 88 percent, and Ontario and Quebec exported 76.1 percent, according to the province.
Industries in B.C. are also generally less exposed to tariffs than other provinces.
A study released by the Canadian Chamber of Commerce in February showed St. Johns, Calgary and Southwest Ontario cities are much more vulnerable due to their reliance on energy and automotive exports.
According to the study’s trade exposure index, the hardest hit B.C. cities would be Abbotsford – Mission, and Chilliwack, ranked 15th and 20th, respectively.
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The most vulnerable Canadian cities to U.S. tariffs, according to the trade exposure index.