As Canada’s trade war with the United States escalates, municipalities are facing higher costs from roads and sewer systems to parks and playground equipment, according to the Federation of Canadian Municipalities. 

FCM President Tim Tierney warned the impact of U.S. tariffs could be “devastating” for municipalities and local businesses, though he said ongoing collaboration with the federal government has helped communities “weather some of the storm.” 

Tierney said FCM has already begun working with federal ministers on measures to provide relief to small businesses feeling the effects of the trade dispute. 

“[Small businesses] employ people in our communities. They were already struggling, I’ve already seen some small businesses have challenges or shutter, but this government seems pretty committed to rolling out a plan very quickly,” Tierney said in an interview with iPolitics. 

U.S. President Donald Trump’s latest 50 per cent tariffs took effect last Friday, hitting about $27.6 billion worth of Canadian goods. Days after the failed negotiations, Ottawa rolled out about $7.5 billion to support workers and businesses. 

However, effects of the trade war are also filtering down to municipal budgets. 

Municipalities own roughly 60 per cent of Canada’s public infrastructure, leaving local governments responsible for procurement materials and equipment needed for everything from roads and sewer systems to community facilities. 

Tierney said that while municipalities have changed procurement models to support Canadians, some products and materials still have to be sourced from the U.S. 

That challenge is particularly apparent when municipalities purchase equipment such as playground structures and other materials for local parks, he said. 

He added that as the cost of supplies rises, municipalities may also need to reassess the scope and pace of projects already planned. 

“We’re going to have to have a sober second thought about how aggressive we are on certain things—these are going to be extremely trying times, either up until the midterms in the States where things could change,” Tierney said. 

“We are part of those discussions,” Tierney said. “All hands are on deck.” 

The tariff pressures are also adding urgency to efforts by municipalities to strengthen trade and investment closer to home. 

Ottawa Mayor Mark Sutcliffe and Gatineau Mayor Maude Marquis-Bissonnette signed a new agreement Tuesday aimed at reducing interprovincial trade barriers and strengthening economic ties across the National Capital region. 

“Ottawa and Gatineau are two cities in two provinces, but we are one economic region. And we are stronger when we work together,” said Mayor Mark Sutcliffe in a statement on Tuesday. 

“This agreement reinforces our commitment to doing everything we can together to attract investment, create opportunities and build a resilient and competitive National Capital Region,” he said.