Toronto officials say businesses across the city are bracing for higher costs, supply chain issues, and possible job cuts as new U.S. tariffs threaten to shake up the local economy.
About 75 per cent of Toronto businesses expect rising costs due to U.S. economic policies, according to a new survey report done by the city. Nearly half anticipate major disruptions to their operations, including supply chain interruptions and reduced demand.
“We know business and workers are worried,” said Mayor Olivia Chow. “Toronto is deeply integrated in the North American market.”
About 37 per cent of businesses surveyed export goods to the U.S., while more than half rely on American imports — mainly raw materials, food, construction products, and machinery.
“That makes us extremely vulnerable to what’s happening south of the border,” Chow added. “And about a third of our businesses think they may have to cut jobs.”
The city has launched a 10-point “Economic Action Plan” to help local businesses navigate the uncertainty.
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Some initiatives in the plan include a focus on buying local — something officials say more Torontonians are already starting to do.
“It’s slow shopping now because everyone’s looking at labels,” said Deputy Mayor Mike Colle.
The survey also found 31 per cent of businesses are already freezing hiring, while 36 per cent are shifting to local suppliers in response to the tariffs.
But beyond shopping habits, city councilors say more structural changes are needed to protect jobs and industries.
“We’ve lost a lot of ground in Toronto,” said Coun. Alejandro Bravo, who chairs the city’s economic development committee.
“We’re about 2.5 per cent below where we should be in employment lands. Let’s protect what we have because we cannot afford to lose a jobs belt in the city.”
Toronto is also looking at zoning changes to protect employment spaces and considering new tools like artificial intelligence to support business growth.
Still, city hall acknowledges that Toronto’s ability to act alone is limited.
“The city admittedly has the fewest levers to be able to make the impact that we want to see on supporting local businesses,” said Coun. Josh Matlow. “But to demonstrate to the provincial government, to the federal government, that the city needs their support — our businesses need their support — I think is really important.”
Officials say with U.S. policy continuing to shift, the need for long-term economic resilience in Toronto is still growing.
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