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Calgary Herald

U.S.-imposed tariffs have cost the city $50,000 so far

The tariff war with the United States has cost the city roughly $50,000 so far, city councillors heard Tuesday. Article content But that number is expected to rise, according to administration's latest monthly update to council's executive committee. Article content Article content The city altered its procurement practices in late March, with a push to buy local to counteract the effect of U.S. tariffs imposed earlier this year by U.S. President Donald Trump. Article content Article content As of June 4, the tariffs now include 50 per cent duties on foreign steel and aluminum, 25 per cent on vehicle and auto parts, and 10 per cent on energy products. Canada's federal government has retaliated with its own 25 per cent tariffs on $30 billion worth of U.S. goods. Article content Article content As part of its procurement strategy, the city is using a supply chain resiliency dashboard that uses historical data to proactively identify risks or supply-chain threats, as well as a tariff exposure dashboard that uses an advanced forecasting model to estimate tariff-related effects across different commodities. Article content The city awarded 153 procurements in May, with 99.9 per cent of the value in those contracts benefiting Canadian suppliers, according to Amit Patil, the city's director of supply-chain management. Article content 'As the Canadian government has not changed its retaliatory measures, our tariff exposure will adjust minimally to reflect the inflated cost of steel,' Patil said. 'We'll continue with our resilience strategy to find alternative sources for steel and aluminum, when possible.' Article content Article content Gisele Aparicio-Hull, from the city's supply management team, told committee members the city recently avoided $8 million in direct tariff-related costs by awarding a $34-million steel pipe contract to a Mexican supplier. The steel pipes will be used for two separate feeder main construction projects, including the Belvedere feeder main and the North Calgary Water Servicing project.