Calgary’s mayor is calling on the federal government to help offset the costs of the trade war as Alberta’s biggest city stares down close to half a billion in tariff-related expenses.
After a special council meeting Tuesday, Mayor Jeromy Farkas said he plans to lobby Ottawa for a rapid tariff relief program that would allow municipalities to seek remittance for essential infrastructure, goods and services.
The city is managing $5.3 billion in active procurement contracts. Officials estimate the new tariffs could increase the cost of those contracts by between $315 and $466 million over the life of the contract.
“We’re seeking that support from the federal government to allow for a remittance process, where essentially we could provide our receipts and the charges that either us or our various aligned contractors are incurring,” said Farkas.
Farkas said he has received positive indications that the federal government is open to the idea.
The mayor’s comments follow Tuesday’s meeting in which city officials outlined the fiscal impact of the trade war and the projected costs produced by the latest round of tariffs.
So far, Calgary has paid $1.2 million in direct costs since the tariffs were first imposed in March 2025, with an additional $5.7 million currently under review or negotiation with suppliers.
Major projects and purchases facing millions in tariffs
City director of supply management Amit Patil said Calgary’s mitigation strategies have enabled the city to effectively shelter against the worst of the tariff impacts so far.
For example, the Bearspaw South feeder main replacement — a major water infrastructure project — faces little exposure to tariffs, with most of the required materials already arrived and much of the remaining material sourced from Mexico. Another key piece of water infrastructure, the North Calgary Water Servicing Project, has sourced pipe entirely from Mexico.
“The city took intentional efforts in sourcing the pipe for this project with tariffs in mind,” Patil said.
City staff expect other projects to be hit harder by tariffs and counter-tariffs. The price of new C-Trains will increase by 25 per cent on delivery, while fire engines and protective gear will jump in price by up to 50 per cent. Additional costs are expected to total up to $31 million for the Green Line expansion, $84 million for new transit vehicles and $11 million for new fire apparatus.
Costs related to the new Scotia Place event centre are projected to increase by up to $30 million.
Farkas said the city will look for new vendors where timelines allow. But for critical infrastructure, goods and services like emergency vehicles, he said he is asking the federal government for relief.
He said he also plans to approach the mayors of other major centres to discuss opportunities for Canada’s biggest cities to pool purchasing power to create demand for the domestic production of municipal equipment typically sourced from the US.
The city’s upcoming annual budget will also reflect trade impacts, Farkas said, as the city is forced to pivot on some of its project priorities.
The mayor was clear that he supports Prime Minister Mark Carney’s approach to the US trade threat.
“The cost of abandoning and giving up our sovereignty far exceeds the short term cost that is required for us to assert ourselves strongly as a city and a province in the country,” he said.
September 10th 2026
