Trump's tariff threats: Montreal cuts contracts with American companies

With Donald Trump's new threat of 35% tariffs against Canada, Quebec municipalities are trying to favor local companies for various purchases and contracts. In the context of the trade war that has been raging for several months, the City of Montreal has successfully replaced American companies that had contracts with it.

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To date, 46 American companies still hold active contracts with the City of Montreal. In February, the figure stood at 54.

The review of the list of suppliers is still underway, the City stated by email.

However, reviewing some of these suppliers, in specialized sectors such as water treatment or information technology, poses challenges.

In 2024, purchases made from American companies represented less than 1% of all acquisitions by the City of Montreal, where strengthening the autonomy of municipal procurement is the result of a clear desire.

Municipalities have had new obligations in this area since the beginning of March.

All American companies that participate in public tenders from municipal agencies and do not have an establishment in Quebec will be subject to a penalty of 10% to 25%. This also applies to those located in a territory covered by an intergovernmental agreement.

This includes hardware and software, medical supplies and equipment, pharmaceuticals and scientific instruments.

Screenshot / TVA News

"Probably, the issue of computer hardware and software is what poses the most problems," said Danielle Pilette, associate professor of municipal management at the University of Quebec in Montreal (UQAM).

"There are categories that are mandatory under the regulation, but which pose few problems for cities, because they buy very few of them or [because] there are very valid European alternatives. For example, [this is the case when we] talk about scientific instruments," she added.

^Ms. Pilette emphasizes that beyond municipal contracts, several cities are doing a lot for economic development in the context of the trade war, in order to help businesses find new markets.

See the full explanation in the video above .