The city of Ottawa is taking significant steps to protect local taxpayers from the rising costs associated with international trade tensions. During Wednesday’s Finance and Corporate Services Committee meeting, city officials unveiled a strategic shift in procurement practices designed to mitigate the impact of tariffs on municipal projects.
“We’re seeing real challenges with the global supply chain that directly affect our bottom line,” explained Gordon MacNair, Director of Supply Services. “Our new approach focuses on de-risking procurement to shield residents from unnecessary cost increases.”
The strategy represents a major evolution in how Ottawa sources materials for infrastructure and service delivery. Rather than simply accepting tariff costs as unavoidable, procurement specialists are now actively seeking ways to bypass these additional charges.
City Treasurer Wendy Stephanson presented data showing tariffs have added between 8-12% to certain capital projects over the past fiscal year. These costs ultimately fall on Ottawa taxpayers through increased project budgets or reduced service delivery.
“When international trade disputes escalate, local governments often bear the financial consequences,” Stephanson noted. “Our job is to find creative solutions that protect Ottawa residents from these external economic pressures.”
The new procurement framework includes several practical measures. Supply Services will prioritize Canadian and North American suppliers when economically feasible. The city will also implement more flexible contracting terms allowing for material substitutions when tariffs suddenly increase costs for specific products.
Local business leaders have expressed support for the approach. “This shows forward thinking from city leadership,” said Sueling Ching, President of the Ottawa Board of Trade. “By prioritizing supply chain resilience, the city protects both taxpayers and local companies that provide municipal services.”
City staff will now evaluate major procurement contracts through a “tariff risk assessment” lens. This process examines potential vulnerabilities in material sourcing and identifies alternative suppliers before contracts are finalized.
Councillor Kathleen Dickson questioned whether the strategy might limit competition. “We need to balance risk management with getting the best value for residents,” she said during committee discussions.
MacNair acknowledged these concerns but emphasized the approach aims to expand supplier diversity rather than restrict it. “The goal is resilience through flexibility. We’re looking to build relationships with more suppliers, not fewer.”
The city has already implemented this strategy for recent transit infrastructure projects, reportedly saving approximately $3.7 million by sourcing certain components from Canadian manufacturers rather than international suppliers subject to tariffs.
For Ottawa residents, the practical effect should be more stable project costs and fewer delays caused by supply chain disruptions. The strategy aligns with similar approaches being adopted by municipalities across Canada as local governments respond to increasingly unpredictable global trade conditions.
“In the end, this is about responsible management of public funds,” concluded Committee Chair Mark Sutcliffe. “We can’t control international trade policies, but we can control how we respond to them.”
The full procurement strategy will be presented to City Council for final approval next month. Implementation is expected to begin immediately for new contracts, while existing agreements will be reviewed as they come up for renewal.
As someone who’s covered Ottawa’s municipal affairs for over a decade, I’ve rarely seen such a practical response to external economic pressures. The approach reflects a growing sophistication in how local governments navigate global economic challenges while protecting community interests.
