Calgary city council members are urging the Canadian government to increase financial support to alleviate the impact of retaliatory tariffs on U.S. imports affecting Canadian municipalities. City administration estimates that Calgary could face between $308 million and $449 million in tariff-related risks on current contracts, with about two-thirds of the projected risk attributed to Canada’s counter-tariffs.
Mayor Jeromy Farkas has personally lobbied Ottawa for additional assistance. In a letter to Finance Minister François-Philippe Champagne, Farkas requested retroactive exemption for municipalities from retaliatory tariff expenses on contracts and orders prior to September 8, along with the establishment of a dedicated tariff relief fund for municipal access.
During a recent council meeting, Farkas highlighted how counter-tariffs are impacting Ottawa’s grant funding to Calgary, specifically affecting investments in projects like light-rail vehicle procurement. Farkas emphasized that a significant portion of the funding is being eroded by these charges, diminishing the effectiveness of government investments in local infrastructure.
The ongoing trade tensions have already cost Calgary $1.2 million in tariff expenses since March 2025, with an additional $5.7 million expected from upcoming contract negotiations. Given Calgary’s focus on infrastructure funding, the pressure from the trade war’s financial strain is particularly challenging. The city has identified ways to mitigate tariff impacts, such as diversifying suppliers globally and incorporating tariff protections into contracts.
John Fragos, a spokesperson from Champagne’s office, stated that Ottawa has boosted funding for municipalities to better assist them in response to tariffs, with at least $59 million allocated to Calgary this quarter. The federal government has made recent investments in Calgary, including funding for a water project, upgrades to the Olympic Oval speedskating facility, and support for a high-speed rail project between Calgary and Edmonton.
Councillor Jennifer Wyness emphasized how the cost of counter-tariffs underscores the disconnect between higher levels of government and the financial challenges faced by local governments in adequately funding infrastructure. She pointed to potential increases in water rates for Calgarians as an example of how these costs are passed on to residents already grappling with affordability issues.
Efforts are being made to communicate clearly with policymakers about the impact of their decisions on municipalities and to advocate for more sustainable funding solutions to support local infrastructure needs.
