Port Moody ‘deeply reliant’ on U.S.-produced goods; city looks for regional approach to tariffs

The City of Port Moody will be making no changes to its procurement or travel policies in the face of the U.S. trade war on Canada – at least for now.

It will, however, be joining a coordinated “Team Canada” response in league with the provincial government, Metro Vancouver and other municipalities in the region.

In a memo to council on March 18, staff recommended a cautious strategy over outright boycotts of American products or services.

“We are vigilant. We are also cautious not to overstep,” said Paul Rockwood, general manager of finance for the city. “Obviously disrupting some of the critical services is not an end game that we’re looking at.”

Council unanimously endorsed a staff recommendation to support a collective approach with other levels of government while staff reviews the city’s exposure to tariffs and identifies ways to prioritize local and Canadian goods and suppliers.

Staff are also being directed to help support local businesses and economic development organizations, and will be engaging with Invest Vancouver to try to shore up foreign investment beyond the U.S.

Rockwood said Port Moody is following the lead of a national team, which is working on its behalf to negotiate. He said staff across Metro Vancouver are meeting regularly, as well as meeting with provincial and federal officials to discuss potential strategies, impacts and courses of action.

“Obviously this trade war is bigger than Port Moody,” Rockwood said. “And I think we need to give this team time to negotiate.”

On March 4, 2025, the United States imposed a 25 percent tariff on Canadian exports and a 10 percent tariff on Canadian energy products. Canada immediately announced retaliatory tariffs, imposing 25 percent duties on $30 billion worth of U.S goods, with plans to add another $125 billion by April 4.

These tariffs are expected to increase costs for a wide range of products purchased by the City of Port Moody including vehicles, vehicle accessories, paper products, cleaning supplies, office supplies, building materials, fire rescue gear, firearms, ammunition, tools, and machinery.

However, due to the interconnected nature of the North American supply chain, staff did not recommend a strict “Buy Canada” approach, as it could lead to increased costs, fewer suppliers, potential supply chain disruptions, and limited access to specialized products and equipment.

There could also be political and public backlash, particularly from Canadians who work for U.S. companies, according to the staff report.

Rockwood said like many municipalities, Port Moody is “deeply reliant” on U.S.-produced goods, and would be challenged to find replacement suppliers.

Practical challenges also exist regarding implementation and monitoring, as the U.S. is the sole source of some products including Microsoft 365 software, as well as police and firefighting equipment and vehicles.

Rockwood noted the situation is further complicated by mergers between U.S. and Canadian companies, as well as indirect sales of U.S.-based products.

He said staff are going through the “arduous task” of reviewing existing contracts to determine the full impact of the tariffs, but added it can be a challenge to even trace the country of origin for many products.

“We are trying to understand how every department is going to be impacted,” Rockwood said.

The collaborative strategy will allow staff time to conduct a proper assessment before any decisions are made around procurement that could disrupt services and completion of critical projects, according to the report.

Port Moody’s current procurement policy focuses on obtaining the best value for goods and services, and current trade agreements do not legally allow the city to impose restrictions.

Staff said it would be possible to tweak its bidding process to update language around scoring criteria that would score Canadian businesses higher.

Breaking ongoing contracts, on the other hand, could have significant cost implications if abandoned.

Rockwood recommended sourcing alternative providers when practical and available, and amending contracts when they expire.

Due to the ongoing trade uncertainty, only pre-booked travel or critically important conferences and training should be approved, such as those related to cyber and systems security that are only available in the U.S., according to staff.

Staff will be prioritizing local training and training over Zoom calls when available.

Mayor Meghan Lahti said she supported the collaborative approach, and signalled the council could take stronger approaches in the future.

“I think that there could be more to come from this council,” she said. “But I think this is a good start.”