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Policy paper

A U.S. tariff action plan for Toronto

Building on the city’s existing measures, seven targeted actions to generate investment, create and protect jobs, and ensure City Hall moves faster to adapt to the continuing threat of U.S. tariffs.

Toronto, August 27, 2026

The announcement

The highlights are a commercial investment grant for start-ups delivered through the City’s existing economic development authority, a bridge-support fund for small businesses under tariff pressure, and a faster path through City Hall.

Chris Alexander announced a new U.S. Tariff Response Plan for Toronto, which builds on the city’s previous initiatives but with a sharper focus, as part of Team Canada, on new investment, small-business success, and job creation.

“As Canada’s largest city and economic engine, Toronto needs to adapt quickly to this latest tariff shock. As key players within Team Canada, our exporters are already finding new markets. Our tech, tourism, agri-food and other sectors continue to grow. Toronto-based firms are finding markets beyond the U.S., and international investors are considering Toronto as the business and financial hub for a reliable Canada. We need to accelerate that shift. This plan puts real tools at the disposal of Toronto businesses: both new firms opening their doors, and existing firms holding the line amid higher costs and new variables.”

Chris Alexander

Where Toronto stands

Quick facts

The picture is not uniformly bad, and the plan is built for the parts that are working as much as the parts that are not: exports and tech employment are growing while the number of storefronts falls.

+33%
growth in Toronto’s non-U.S. exports, 2024 to 2025Exporters are already finding markets beyond the U.S.
74,560
business establishments in 2025Down about 2.6 per cent from the 2019 peak of 76,560
358,000+
tech workers — third in North America for tech talentUp 75,000 since 2022, and 11 per cent of total employment
~33%
of Toronto businesses have been trading under five yearsThe firms least able to absorb a shock

What changes

The seven-point plan

  1. A new business investment grant: expanding EDGE

    New business creation in Toronto has slowed in recent years, and U.S. tariffs are an additional headwind. As mayor, Chris would introduce by-law amendments expanding the city’s existing Economic Development and Growth in Employment (EDGE) incentive programme to add a two-year start-up and first lease stream.

    Since the City of Toronto Act prohibits a full exemption from commercial property tax for business sub-classes, the grant instead reimburses the commercial property taxes a new business pays — paid directly to the business, not the landlord. Businesses established after June 1, 2026 and eligible under the Small Business Property Tax Subclass would qualify, covering their reduced tax bill for two years.

    [ Eligibility requirements ]

    • Only genuine new business registrants creating at least four new jobs — not rebranded firms or spinoffs of existing local firms.
    • A business that closes within one year would be required to refund the grant.
    • Reviewed by the City Solicitor and reported to Executive Committee before launch, with a public dashboard tracking uptake, cost and jobs created.

  2. A small business bridge support program

    Existing businesses are under tariff pressure too, absorbing higher input costs while launching into new markets. Chris would seek a City partnership with credit unions, the Business Development Bank of Canada and other financial institutions to launch a loan-guarantee program — letting small businesses bridge short-term cash-flow strain without taking on high-cost debt.

    Delivered through a streamlined application process at the city’s existing small business support centres.

  3. Faster, cheaper licensing

    Simplify and streamline municipal operating licence categories, cut 2027 licence costs by 30 per cent, and eliminate permit fees for street events, farmers' markets and similar Toronto-based small and medium enterprises.

  4. More favourable commercial property tax rates

    Request costed scenarios for reducing the ratio of commercial to residential property tax to 1.98 in the shortest possible timeframe, strengthening Toronto’s position as a destination for investment.

  5. Sector adaptation tables: with public deadlines

    Within 90 days of taking office, convene adaptation tables for Toronto’s major industries — agri-food, culture, energy, finance, health sciences, manufacturing, professional services, technology and tourism — with the Toronto Region Board of Trade, Toronto Global and interested GTA municipalities.

    Each table publishes three concrete commitments with public timelines within 90 days of its first meeting, so the work is checkable rather than perpetual.

  6. Canadian procurement, done within the rules

    Direct staff to maximise Canadian-content procurement within the thresholds set by CUSMA and CETA, and to review and seek viable alternatives to competitive procurement contracts won by U.S.-based firms.

  7. Leveraging and leading Team Canada

    Establish a committee of elected officials, business and civil society leaders to advocate for investment and post-tariff support from the governments of Canada and Ontario — including Toronto’s role as a hub for new defence capabilities, innovation and production.

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