Oakville enhances procurement rules to support Canadian and Ontario businesses amid tariff measures between the U.S. and Canada

Council unanimously approves updates to town’s purchasing by-law

The Town of Oakville is actively taking steps to support Canadian and Ontario businesses and minimize the impacts of the ongoing tariff challenges between the U.S. and Canada.

At the March 24, 2025 meeting, Council unanimously approved a recommendation from the Tariff Task Force to approve amendments to the town’s procurement by-law that governs how the town buys goods and services. The changes include:

• Increasing purchase limits to match the standards outlined in the Canadian Free Trade Agreement (CFTA);
• Giving preference to Canadian and Ontario suppliers for certain purchases outlined in the CFTA’s limits; and
• Making it easier for the town to join other buying groups to leverage securing better deals, discounts, and/or terms from suppliers.

The Tariff Task Force conducted an internal review to determine the feasibility of shifting procurement to Canadian companies while ensuring compliance with existing domestic or international trade agreements and maintaining fiscal responsibility. The task force found while most of the town’s purchases come from Canadian suppliers, many of these suppliers are affected by cross-border trade. This means the town will likely face higher costs due to tariffs that could also affect services and the cost of supplies. The town’s Finance team is focused on understanding the impacts of tariffs on procurement, exploring the feasible response measures the town can take, and assessing any impacts to the capital and operating budgets.

The town’s Economic Development team continues to be focused on outreach and education to support local businesses and connecting them to available programs. A Tariff Resources for Business Support web page is available on the Invest Oakville website. Oakville is also working with other municipalities and organizations, such as the Ontario Auto Mayors Caucus, to create a united response to U.S. trade policies.

Next steps and looking ahead

While the full impact of the current trade challenges remains uncertain, the Town of Oakville is committed to helping businesses navigate those challenges and will provide further updates as new information becomes available. In addition, the town continues to review its by-laws and permits to find ways to support local businesses. Staff are also closely monitoring any financial impacts to major contracts and projects that may impact the town’s budget. 

Quotes

“As your Mayor, I issued a Mayoral Direction to establish Oakville’s Tariff Task Force to protect and support our local businesses. By strengthening our procurement rules, we are prioritizing Canadian and Ontario companies, ensuring our economy remains strong. We are committed to supporting local businesses and will continue to advocate for their success.” – Mayor Rob Burton

“The updates to our procurement by-law are a strategic step forward to make sure Oakville remains resilient in the face of trade disruptions between the U.S. and Canada. We’re committed to doing what we can to mitigate tariff impacts and optimizing our purchasing processes. Our Tariff Task Force continues to work closely with businesses to navigate these challenges effectively.” – Jane Clohecy, CAO, Town of Oakville

Background

• On February 4, 2025, Mayor Rob Burton issued a Mayoral Direction to convene a cross-departmental Tariff Task Force to look at how tariffs are affecting Oakville and find ways to reduce risks and keep local businesses running smoothly. 
• Members of the Tariff Task Force include: the Chief Administrative Officer, Deputy Treasurer and Director of Finance (co-chair), Director of Economic Development (co-chair), Director of Communications and Customer Experience, Assistant Town Solicitor, Manager of Purchasing, Manager of Intergovernmental Affairs and Public Policy, and other staff engagement as appropriate.