Vancouver council was unanimous Tuesday in directing city staff to explore a series of measures — including potential property tax deferral for commercial properties — to help business owners fight back against an expected economic blow coming from tariffs imposed by U.S. President Donald Trump.
Mayor Ken Sim called the special meeting out of concerns he’s heard from the business community about the negative effect that unilateral 25 per cent tariffs on Canadian exports could have on the local economy.
Trump signed executive orders Monday to impose tariffs of 25 per cent on aluminum and steel imported from countries, including Canada, into the U.S. beginning March 12.
“I know a lot of people are nervous right now as we face a trade war and potential tariffs imposed by the U.S. government, and it will hurt Canadians,” Sim said. “I believe it's more important than ever before that Vancouverites work together during this uncertain time to ensure that our city remains resilient in an unpredictable trade environment.”
That concern triggered Green Party Coun. Pete Fry to work with Sim’s office over the past week to draft a motion together to develop a strategy at the municipal level to coincide with provincial and federal efforts to fight back against Trump’s tariffs.
That strategy includes creating an “internal roundtable” to facilitate a rapid response to tariffs and other economic challenges facing the city and businesses. The motion specifically requests staff report back on actions the city can take that could include:
• Temporary fee reductions for patio permits and special event permits.
• Property tax deferral for commercial and/or light industrial properties.
• Potential adjustments to the city’s business licensing regime “to enable businesses to expand the scope of their businesses in the face of economic uncertainty, through a ‘split-licence’ mechanism.”
Sim provided an example of how a split licence could work.
“If you travel throughout different parts of the world, you have restaurants that may be cafes and breakfast places in the morning, they turn into lunch places in the afternoon, and they turn into wine bars in the early evening, and then they could even turn into a cabaret at night,” he told reporters after the meeting.
LOCO BC
The motion from Fry and Sim also requests the city’s Business and Economy Office immediately begin work with local business and community economic development organizations to explore opportunities to initiate and promote a new targeted buy-local-buy-Canadian campaign in response to tariffs.
Council heard Tuesday from Amy Robinson, executive director of LOCO BC, a non-profit she founded in 2009 to support local businesses and advocate for increasing local spending.
Robinson said her research shows local retail businesses keep between six and eight times the revenue recirculating in the local economy and produce eight times the revenue and eight times the jobs per square foot as U.S.-owned multinationals.
“So we can be much more efficient with our land when we support local retailers,” said Robinson, who encouraged council to develop land use policies that better support local businesses.
“We can encourage consumers to shop local, but if we're not [allowing] them in our communities, it's much more difficult for them to do.”
Councillors asked many questions of city manager Paul Mochrie about the effect tariffs could have on the City of Vancouver. Mochrie explained he and his staff are still in the exploratory stages, noting the uncertainty of Trump’s position.
“The information and the situation keeps changing day to day,” he said. “So I think we'll look to really understand what's happening. That will influence the type of work that we need to do.”
'Tariffs hurt real people in Vancouver'
BIV reported Feb. 5 that 91 per cent of the City of Vancouver’s business with suppliers since 2009 has been with Canadian companies, while only eight per cent were with the United States.
Tuesday’s council meeting inspired patriotic speeches from councillors, including Lenny Zhou, who referenced Premier David Eby’s emotional address at the Invictus Games over the weekend, where he emphasized the bond between Canadian and American soldiers.
“It is so unfortunate that we have to discuss this at a municipal council meeting because of the newly elected president south of the border,” Zhou said.
“Premier Eby’s speech at the Invictus Games opening really touched my heart. For generations, Canada and the United States have been partners, allies and friends. We have stood together in times of war, shared in economic growth, and built a relationship based on mutual respect. But today, that relationship is being tested. The livelihoods of families in Vancouver, are now at risk because of policies that prioritize politics over partnership.”
Zhou continued: “Let me be clear: these tariffs hurt real people in Vancouver. They mean lost jobs, higher costs, and uncertainty for small businesses trying to make an honest living. But let us remember — Canada has never been a nation that bows to pressure. We have never been a country that surrenders our sovereignty for the convenience of others. When our people are tested, we do not falter; we rise.”
Bligh in Washington, D.C.
Coun. Rebecca Bligh attended the meeting remotely from Washington D.C., where she was meeting with government officials in her capacity as president of the Federation of Canadian Municipalities.
Bligh said speeding up permitting for businesses and housing construction could help offset losses for operators.
“We know that our construction sector is already under immense pressure related to rising construction costs, fees, labour, and also just a softening of the market overall,” she said. “So cash flow relief for housing development is also a critical piece of this.”
On the topic of property tax deferral, Bligh said she wouldn't want to “over-commit ourselves at this stage,” adding that the focus should be on “incentivizing growth.”
“One quick example is a business owner who was looking to replace an awning and ended up having to pay more in fees than it cost for the actual awning,” she said.
“I think we have more tools in the toolbox to incentivize growth in our local economy. Property tax breaks will be expensive in the long run, especially at time in an economic environment we can't control. So I hope that we can focus on what it means to really pull those levers to ensure that we can continue to grow as a local economy.”
Fry emphasized the need for the city to be prepared, no matter what Trump imposes.
“There's a whole raft of considerations that we need to be alive to and be able to respond to,” he said.
“So if we see the cost of American goods that are part of a capital project rise because we have Canadian tariffs, we have to be thoughtful about that and recognize that that's going to change the bottom line on some of our capital projects, or operating budgets or what have you.”
'Reducing red tape'
The Greater Vancouver Board of Trade’s president and CEO, Bridgitte Anderson, released a statement Tuesday in support of council’s move, saying “the best thing the city can do is act within its powers to make it easier to set up and run a business.”
“By speeding up permitting, reducing red tape, controlling costs, taxes and fees, and continuing to support public safety, we will see meaningful benefits for our community,” Anderson said.
She also thanked council for adopting the board’s “3% Challenge,” which calls on governments to align their policies towards supporting economic growth and a vibrant business community.
“Sustained economic growth raises incomes, creates opportunities and drives innovation,” Anderson said. “It is the only path to greater financial security, improved affordability and a brighter future for Vancouverites.”
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