The tariff war between the United States and Canada has caught up to the Township of 黑马磁力, with the council voting for $63,000 in additional funding for new portable seating.
The two seating units were ordered some time ago, and it was thought that they wouldn't be subject to tariffs. But Canadian counter-tariffs on the steel and aluminum content of the new seating has resulted in the increase in price.
Until now, the Township has been hit with just a few tariffs, mostly involving a few hundred dollars, or a couple of thousand, said Jason Winslade, the Township's manager of municipal administration, facilities and corporate projects.
"This is the first one that's of any significant dollar amount," Winslade told the council at their Monday, July 21 meeting.
Councillor Kim Richter asked if the Township could delay.
鈥淐an we wait until that agreement is settled, which sounds like it could be coming this summer sometime?" Richter asked.
Winslade said it is an option, but the seating was ordered for events scheduled for the summer and early fall. It has already been delayed as staff tried to have it reclassified to avoid the tariffs, but that meant it wasn't available for Canada Day events.
鈥淭his is being purchased from a Canadian company, however the majority of the parts come from the U.S.," Winslade said.
He also noted that the supplier was the only bidder 鈥� if the Township scraps the contract, they'll have to start over again from scratch.
"Wherever possible, staff are pivoting," Winslade said.
A recent purchase of a new grass mower for parks and fields was facing a tariff, and staff cancelled and switched to a supplier not subject to tariffs.
Council voted in favour of funding the extra tariff cost, but also to apply to the federal government for funding relief. Ottawa is returning some tariff costs for situations where goods can't be sourced domestically or from non-U.S. sources. There is also relief when there are exceptional circumstances, on a case-by-case basis, that could cause "severe adverse impacts" on the Canadian economy.
The report noted that there is not guarantee of relief funding.
The tariff war was sparked by U.S. President Donald Trump, who earlier this year began imposing tariffs on many Canadian goods, including steel, aluminum, and cars. The Canadian government has responded with counter-tariffs on a variety of U.S. goods. Trump has more recently threatened to impose a 35 per cent tariff on many Canadian goods, and Canadian Prime Minister Mark Carney has indicated that Canada and the U.S. may not reach a trade agreement before that date.
