As much as we may want to avoid the subject, tariff talk continues to dominate the news cycle, with residents understandably confused about what’s being taxed, from where, when, and how much — details that have changed multiple times at the whim of U.S. President Trump.
As the levies persist, some cities will see greater impacts than others, as will some industries, though hardly any corner of the economy is immune. At a local level, the City of Toronto has launched an action plan that includes deferring industrial property taxes and a campaign urging residents to shop within their community rather than supporting American brands.
Still, independent businesses are staring down the barrel of higher operating costs, logistical tribulations and more that, many say, will lead to even fewer jobs being available in the city when unemployment has risen to a brutal 8.7 per cent.
Out of more than 500 small businesses that expressed their fears on the subject to the City via a recent survey, nearly a third — 31 per cent — said they expect to have to lay off some existing staff as the weight of the tariffs sets in. Another 31 per cent said they are going to, or already have, put a pause on hiring anyone new.
“The cumulative effect of these tariffs… threatens to upend global supply chains, shut down manufacturing plants in Canada and the U.S., and reduce the productivity of the global economy with some economists raising the increasing likelihood of a recession in the U.S., Canada and beyond,” reads a City doc that includes the above survey results (which will “help to inform the City’s support strategies and advocacy efforts” moving forward).
“The significant disruption to the global trade order engendered by U.S. policy changes and attendant uncertainty in markets underlines the need for Toronto and Canada to strengthen the resilience of our economy and address structural inefficiencies in the local economy to achieve long-term economic resilience.”
Part of that strengthening will entail, according to Toronto Economic Development & Culture, things like supporting tech adoption and competitiveness, better utilizing and growing the city’s port, honing sectors that are already tariff-resilient, reducing reliance on U.S. goods and services (such as energy), and generally “enhancing Toronto’s business environment” by cutting red tape and other measures if needed.
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