Calgary applies to Ottawa for tariff relief on $308M infrastructure risk

Calgary's city council applied to Ottawa on Monday for tariff relief, telling the federal finance minister that municipalities face the same retaliatory tariff pressures as businesses but have far fewer ways to seek help.

The city sent a letter to Finance Minister Francois-Philippe Champagne requesting three things: an exemption from tariff costs on contracts signed before September 8; a dedicated tariff relief fund for municipalities on contracts awarded after that date; and the ability for cities to apply directly for relief instead of relying on suppliers to seek it on their behalf.

"Tariff costs are often embedded within supply chains and reflected in higher prices," the city's letter said. "It is difficult for municipalities to identify, recover, or seek relief for such costs."

The city's total tariff risk stands at $308 million — down from $315 million — assuming tariffs remain in place for the lifecycle of contracts with no mitigations. Calgary has already spent $1.2 million on tariff-related costs since February 2025 and is negotiating contracts that could add another $5.7 million. Steel, aluminum, copper wire, stainless steel and fabricated construction materials are the main cost drivers.

Projects at risk include water pipeline construction, fire trucks, light-rail transit vehicles and Scotia Place event centre. The city is working to diversify suppliers, time purchases strategically and add contract clauses to soften the blow.

Ward 2 Coun. Jennifer Wyness said the federal government must act. "If the federal government doesn't start partnering with us, I don't know how we can actually tackle our infrastructure gap," Wyness said. "When we start showing these numbers, it really shows how out of touch the federal government is on the cost of infrastructure. I think we need to work on clear communication to show those with the bigger bank accounts how their policies are harming our municipality."

Federal retaliatory tariffs cover $28 billion worth of American goods. Ottawa has implemented a "Buy Canadian" procurement policy and remission relief on certain counter-tariffs, but the city says that mechanism leaves municipalities caught in embedded costs they cannot track.