Regional report details potential impacts of U.S. tariffs
Posted Apr 3, 2025 04:00:28 PM.
Last Updated Apr 3, 2025 04:00:34 PM.
No matter how you slice it, the tariffs imposed by the current United States administration will have a negative impact on the local, provincial and national economy.
The Waterloo regional council administration and finance committee will be presented a report at its April 8 meeting that outlines the potential impacts on the municipality’s budget.
The report shows that $165 million or 9.7 per cent of the region’s $1.7 billion operating budget could be impacted by tariffs. It also shows the levies could increase the cost of capital projects by $16.5 million dollars. The capital budget for 2025 is $784 million.
Council had directed staff to review procurement processes for opportunities to support the ‘Buy Canadian’ initiative. Regional staff will present that report at a later date.
Ian McLean, President and CEO of the Greater Kitchener Waterloo Chamber of Commerce, was a guest on The Mike Farwell Show and said not knowing what future tariffs will be or where they will be targeted is causing turmoil.
“For us locally, uncertainty means investments and decisions on hiring and new contracts are all on hold. It’s like we’re in suspended animation now, because no one knows what this actually means.”
McLean points out that although Canada was not included in Wednesday’s tariff announcement, we are still dealing with the fentanyl-related tariffs and the steel and aluminum tariffs.
“The good news, and I do that in air quotes, the good news from yesterday is that we didn’t get hit with more; it’s like winning an ugly contest. Whether you come first, second or third, you’re still in an ugly contest.”
McLean went on to say that the U.S. putting tariffs on the whole world will produce a very negative result.
“We’ve got to support local business and the sectors that are most impacted. Really, this is six to twelve months. What are the things we need to do to keep our business and industry going?”
McLean said the Business and Economic Support Team of Waterloo Region (BESTWR), which is made up of representatives from the KW Chamber, the Cambridge Chamber, Communitech and the Waterloo Region Economic Development Corporation, have been working on various strategies for different industries to help find new markets and secure supply lines to help offset some of the impacts of the current or any future U.S. tariffs.
