Cities brace for fallout as Trump trade war impacts municipalities

'All we’re doing is hurting our local residents right in the pocketbook. And for what?' says FCM president and Ottawa City Councillor Tim Tierney

Published Aug 25, 2026  •  Last updated 36 minutes ago  •  2 minute read

Federation of Canadian Municipalities and Ottawa City Councilor Tim Tierney, in Ottawa on April 15, 2026 Photo by Jean Levac /Postmedia file

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OTTAWA — While Washington and Ottawa remain at loggerheads over U.S. President Donald Trump’s trade war, it’ll be Canadian municipalities — and taxpayers — left holding the bag.

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In an interview with the Toronto Sun, Federation of Canadian Municipalities (FCM) president and Ottawa City Councillor Tim Tierney warned that while federal politicians are embroiled in macro-level trade battles, it will fall to local governments to bear the brunt as essential infrastructure procurement costs spike.

“The first people that will feel it are municipalities and their residents,” Tierney said, pointing out that 60% of Canada’s public infrastructure is owned by municipal governments.

He pointed to Dominion City Brewing Company, a small business in his northeast Ottawa ward, who are already feeling the impact.

“We see already the pressure on a lot of microbrew companies where the aluminum costs are outrageous, a lot of them are closing down. Adding this extra pressure of extra tariffs is really going to be a challenge.”

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Tariffs will make projects, even basic maintenance, costly

Whether it’s large capital investments like public transit or infrastructure builds, or even basic maintenance items like replacement grader blades or street sweeper brushes, Canadian cities remain heavily reliant on U.S.-sourced parts, he said.

Tariffs, Tierney said, threaten to send contract prices for local parks, community centers and critical water systems soaring.

“If you want sewers and water (infrastructure) fixed …. it’s going to be even more outrageous,” he said.

“You’re stuck. You have to pay the ransom for those parts.”

In response, the FCM is fostering cross-border municipal alliances, Tierney said — including ongoing discussions with U.S.-based National League of Cities (NLC) president and Louisville, Ky. city councilman Kevin Kramer.

“They are feeling exactly how we’re feeling on both those things,” Tierney said.

He said municipal leaders on both sides of the border are doing what they can to convince their federal counterparts to play nice.

“All we’re doing is hurting our local residents right in the pocketbook. And for what?” Tierney added.

“They’re all feeling the pain.”

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