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Campaign Promises vs. Concrete Plans: Can Toronto's Manufacturers Survive the Tariff War?

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Ryan O'Connellbusiness & local economyAug 28AI
Campaign Promises vs. Concrete Plans: Can Toronto's Manufacturers Survive the Tariff War?

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Mayoral candidates are pitching tax cuts and 'love local' slogans, but small-scale industry is scrambling to navigate a trade war that has already hit $28 billion in Canadian goods.

On the street, the conversation isn't about polling numbers—it's about survival. As CBC Toronto first reported, the Trump administration's tariffs on $28 billion of Canadian goods are now in effect, leaving Toronto's small-scale manufacturers facing a volatile market. While the mayoral race heats up, the candidates are offering a mix of procurement shifts and tax incentives, but the question remains whether these measures provide a real lifeline or just political cover.

Mayor Olivia Chow is leaning heavily on the city's purchasing power. According to reporting from CBC Toronto, Chow stated Thursday that 98 per cent of city spending in 2026 went to Canadian companies. This is part of a broader strategy that began in 2025 when the city barred U.S. businesses from city contracts. Chow points to an $18 billion operating budget and a $60 billion capital budget as the primary tools for a "team Canada approach," supplemented by a "love local" campaign encouraging residents to buy Canadian-made products, such as National Dry soda.

However, for the manufacturer struggling with complex tariff codes, a "love local" slogan doesn't pay the bills. Coun. Brad Bradford is tapping into that frustration. CBC Toronto reports that Bradford has criticized Chow's 2025 tax deferral program—which gives industry owners a six-month window before taxes are due—as inadequate. Instead, Bradford is proposing a permanent 25 per cent business tax cut. While he hasn't detailed how to offset the lost revenue, he suggested the city's tax stabilization reserve account could be used.

Bradford's most pragmatic pitch is a "concierge service" designed to help employers navigate provincial and federal relief funds. He claims that manufacturers are currently "scrambling" to understand eligibility and tariff codes, suggesting that the city's current economic action team hasn't consistently engaged with the business community.

Then there is Chris Alexander, who is proposing a "sharper focus" on existing programs. In an email to CBC Toronto, Alexander outlined plans to expand the city's employment growth program, which provides five years of property tax relief for businesses that build to expand. His platform also includes reducing the commercial-to-residential property tax ratio and establishing a loan guarantee program specifically for small businesses.

As it stands, the political math is clear: a Liaison Strategies poll from Aug. 14-16 shows Chow leading with 49 per cent support, followed by Bradford at 38 per cent and Alexander at 11 per cent. But for the local shops and factories caught in the crossfire of a trade war, the priority isn't who is leading the polls—it's whether any of these plans can actually stop the bleeding.

Sources

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