Skip to content

City buys minimal amount of American goods and services

The City of Terrace won't be playing any kind of role in the ongoing tariff war between Canada and American president Donald Trump
33295176_web1_230720-TST-terrace.city.hall
Terrace City Hall. (Staff photo)

The City of Terrace won't be playing any kind of role in the ongoing tariff war between Canada and American president Donald Trump.

It buys just 1 per cent of its goods and services from four American companies as it is, council found out through a four-page report prepared by interim city manager Lori Greenlaw and discussed briefly when council met May 12, 2025.

Another 1 per cent was purchased by one other company described as a mixture of vendor origin.

And what it does purchase, mostly software-related services, are described as "critical to the city's ongoing operations," Greenlaw noted.

"The city's current level of spending on U.S. vendors is limited and concentrated in areas where terminating contracts could have significant operational impacts," she added.

Greenlaw's report stemmed from a request of Councillor Chris Apps that city officials review purchase options favouring the purchase of Canadian goods and services.

Purchases of American goods and services amounted to $120,000.

Greenlaw did note that the city's investigation of the 500 vendors it does business with used the definition of a Canadian supplier "as a business that maintains a physical presence in Canada, regardless of ownership by a U.S.-based parent company."

"When ownership is taken into account, approximately 3 per cent of the city's purchases are from companies owned by U.S.-based parent corporations."

As to the impact of tariffs on city finances so far, Greenlaw was cautious but optimistic about the purchase of several vehicles containing U.S.-manufactured equipment from local vendors earlier this year. They have yet to arrive.

"Some vendors have indicted that, based on current trade law, vehicles built in the U.S. using parts primarily sourced from the U.S., Canada or Mexico, and meeting other requirements, would likely be considered compliant under the Canada-United States-Mexico Agreement. This would protect the city from incurring additional costs beyond the quoted prices," she said.

Suppliers of other goods and services are more uncertain and city staffers will keep an eye on tariff-related developments, she added.

Mayor Sean Bujtas was happy that the city buys so little from the United States.

"It's showing that the practices that we have in place are in line with what council is feeling," he said.

Apps said the report is a help in showing residents that the city is already focused on Canadian purchases.

He also doubted there were viable alternatives to the American software and services the city uses.



About the Author: Rod Link

Read more