Steel and aluminum tariffs likely to impact London’s 2018-2019 budget

Whoever wins in next month’s municipal election will need to deal with the fallout of U.S. President Donald Trump’s tariffs.

A report headed to Tuesday afternoon’s meeting of London’s corporate services committee shows the impact of Trump’s 15 per cent tariffs on steel and aluminium could hit London hard.

“The estimated impact of steel and aluminum tariffs could be close to $10 million over planned budgets for the next five years,” the report reads.

“Purchasing that would most likely be impacted includes fleet vehicles and equipment for the city (including fire and police), new and refurbished facilities and transportation or pathway projects that include bridges.”

London Chamber of Commerce CEO Gerry McCartney told 980 CFPL the tariffs will slow down job creation, construction, and profitability.

“At the end of the day, you’re either going to pay more as a consumer or you going to pay more through your taxes,” he said.

McCartney said until Americans tell Trump the tariffs are impacting them negatively, the president is going to continue on his “rant.”

“I think the pushback that Americans’ll be giving to their own administration will be the telltale sign, and those are things like motorcycles and cars and beer cans and soup cans. There’s like 50 companies that have already lobbied strenuously against the president to relax these tariffs or not put them through.”

McCartney said Foreign Affairs Minister Chystria Freeland is doing an admirable job of focusing on relationships, and “staying the course.”

He also said that while Trump might not listen, or care, Canada needs to push for its agenda.

“There’s going to have to be some give and take, there’s no question about it. I think you’re going to see some of that in the days ahead.”

London city staff say the likelihood that the tariffs will impact the 2018-19 budget is high.