Calgary city councillors are urging the Canadian government to provide additional funding to alleviate the financial burden imposed on Canadian municipalities by retaliatory tariffs on U.S. imports.
According to city administration, Calgary is facing a tariff-related risk ranging from $308 million to $449 million on existing contracts. Approximately two-thirds of this projected risk stems from Canada’s counter-tariffs.
Mayor Jeromy Farkas has personally appealed to Ottawa for increased support. In a letter to Finance Minister François-Philippe Champagne, Farkas requested retroactive exemption for municipalities from retaliatory tariff costs on contracts and orders made before Sept. 8. He also proposed the establishment of a dedicated tariff relief fund for municipalities.
Farkas highlighted that counter-tariffs are impacting Ottawa’s grant funding to Calgary, affecting various projects such as the procurement of light-rail vehicles. He expressed concerns that a significant portion of the investment in local government is being eroded by these charges.
The ongoing trade tensions led Canada to impose counter-tariffs on over 700 U.S. products in response to the U.S.’s introduction of 50-percent tariffs on Canadian goods. Since March 2025, Calgary has already incurred $1.2 million in tariff costs, with ongoing contract negotiations potentially adding another $5.7 million.
Facing pressure on its budget due to the trade war, Calgary is focusing on funding major infrastructure projects. Despite the challenges, Farkas emphasized that Calgary’s reliance on Canadian suppliers in 95 percent of its contracts positions the city well to navigate the trade war impacts.
To mitigate the financial impact of tariffs, the city is diversifying its suppliers globally and incorporating tariff protections into contracts. Ottawa has increased its funding for municipalities in response to the tariffs, with at least $59 million allocated to Calgary in the current quarter.
Recent investments in Calgary include funding for a water project in the north end, upgrades to the Olympic Oval speedskating facility, and collaboration with Alberta on a high-speed rail project linking Calgary and Edmonton.
Coun. Jennifer Wyness expressed concerns over the disconnect between higher levels of government and the financial challenges faced by local governments in funding infrastructure. She highlighted the potential impact of rising water rates on Calgarians and stressed the importance of clear communication to demonstrate the impact of policies on municipalities.
In conclusion, Calgary is actively seeking solutions to mitigate the adverse effects of retaliatory tariffs on its budget and infrastructure projects as it navigates the ongoing trade tensions.
[Link to original article](https://www.cbc.ca/news/canada/calgary/counter-tariffs-cost-budget-9.7371582)
