Toronto · August 27, 2026

POLICY 1

A U.S. TARIFF ACTION PLAN FOR TORONTO AS CANADA'S ECONOMIC ENGINE

Building on the city's existing measures, this plan includes 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.

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.

TORONTO, September 27, 2026 – Chris Alexander today 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,” said Chris. “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.”

1. A NEW BUSINESS INVESTMENT GRANT — EXPANDING EDGE

New business creation in Toronto has slowed in recent years; U.S. tariffs represent an additional headwind. As mayor, Chris would introduce by-law amendments to expand 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, this initiative would reimburse the full amount of commercial property taxes paid by new businesses as property owners or lessors. This amount would be paid directly to the new business, not the landlord. New businesses established after June 1, 2026 and eligible for existing tax breaks as part of the Small Business Property Tax Subclass would qualify for this grant, which would cover their reduced tax bill for two years.

  • Only genuine new business registrants creating at least four new jobs — not rebranded firms or spinoffs of existing local firms — would be eligible for this grant.

  • If the business closes within one year, it would be required to refund the grant.

  • The program would be 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 also under tariff pressure, as they absorb higher input costs, face uncertainty in U.S. markets and launch their products in new markets. As mayor, Chris would seek to establish a City of Toronto partnership with credit unions, the Business Development Bank of Canada and other financial institutions to launch a loan-guarantee program for existing small businesses to allow them to bridge short-term cash-flow strains without taking on high-cost debt. This would be delivered through a streamlined application process available through the city's small business support centres.

3. FASTER, CHEAPER LICENSING

Chris would move to simplify and streamline municipal operating licence categories, cut 2027 licence costs by 30 percent, and eliminate permit fees for street events, farmers' markets and other similar Toronto-based SMEs that currently require municipal permits and licences.

4. MORE FAVOURABLE COMMERCIAL PROPERTY TAX RATES

While protecting existing businesses and incentivizing start-ups, Toronto also needs to adapt to this new tariff landscape by making it more attractive for international firms and investors to locate offices and operations here. As mayor, Chris would request costed scenarios for reducing the ratio of commercial to residential property tax to 1.98 in the shortest possible timeframe. This would strengthen Toronto's competitive position as a destination for Canadian and international investment.

5. SECTOR ADAPTATION TABLES — WITH PUBLIC DEADLINES

Within 90 days of taking office, Chris would convene, in consultation with the Toronto Region Board of Trade, Toronto Global, and other interested GTA municipalities, adaptation tables for major Toronto-based industries, including agri-food, culture, energy and natural resources, finance, health sciences, manufacturing, professional services, technology, tourism, and others. Each table would publish three concrete commitments with public timelines within 90 days of its first meeting. The objective would be tangible deliverables that move the needle with regard to employment, innovation, investment and opening new markets.

6. CANADIAN PROCUREMENT, DONE WITHIN THE RULES

Chris would introduce a motion directing staff to maximize Canadian-content procurement within the thresholds set by the Canada-U.S.-Mexico Free Trade Agreement (CUSMA) and the Canada-EU Comprehensive Economic and Trade Agreement (CETA). The motion would authorize City staff to review and seek viable alternatives to all competitive procurement contracts won by U.S.-based firms, including for amounts above the current thresholds of approximately $350,000 for goods and services and $8.8 million for construction.

7. LEVERAGING AND LEADING TEAM CANADA

As mayor, Chris would establish a committee of elected officials, business and civil society leaders to advocate on Toronto's behalf for investments and post-tariff support by the governments of Canada and Ontario to protect city businesses and workers from the adverse impact of U.S. trade action, to share proposals for even more effective support and to leverage Toronto's business and sectoral leadership within Team Canada.

This would include advocacy for Toronto's role as a hub for new defence capabilities, innovation and production. Building on point seven of the City of Toronto's existing tariff response plan, as mayor Chris would direct City staff to develop proposals for adopting technology solutions currently available from Toronto-based and other Canadian suppliers. He would also task the technology, financial and culture sector adaptation tables to make urgent proposals for improving retention of growth-stage firms and talent in Canada, which would also be presented to provincial and federal partners.

The EDGE expansion, procurement motion, and legal and fiscal review below would be presented to Executive Committee and City Council at their first meetings following the election. Read the full plan: chrisalexander.ca.

LEGAL AND FISCAL NOTE

The Investment Grant would be delivered under the City's existing Community Improvement Plan authority — the same authority behind the EDGE Incentive Program — not as a property tax exemption, and will be reviewed by the City Solicitor before introduction. A full costing of the package, by initiative and by funding source, will accompany the motion to Executive Committee.

QUICK FACTS

  • Toronto's business community is already adapting: a Canadian Chamber of Commerce analysis found Toronto's non-U.S. exports rose by nearly 33 percent from 2024 to 2025.

  • At the same time, the churn is real: City of Toronto surveys show 74,560 business establishments in 2025, down about 2.6 percent from the 2019 peak of 76,560, and Statistics Canada estimates show business closures in the Toronto CMA have recently outpaced new openings — a gap this plan is built to help close.

  • Toronto ranked third in North America for tech talent in 2026, behind only the San Francisco Bay Area and Seattle. Tech employment exceeded 358,000 — up 75,000 jobs since 2022 — and now accounts for 11 percent of overall employment in Toronto. But a worrying number of growth-stage firms continue to depart, mostly for the U.S.

  • About 33 percent of Toronto businesses have been operating for less than five years — a large, constantly renewing pool of new firms. This plan is designed to help new firms and start-ups survive their first two years.

Media contact: (437) 907-1376 | press@chrisalexander.ca | chrisalexander.ca