Calgary's exposure to US tariffs has fallen marginally to $308 million from $315 million, but the city is now turning to Ottawa for direct relief before contracts awarded for steel, aluminum and transit projects inflate that figure further.

The executive committee on Monday backed a letter from Mayor Jeromy Farkas to federal Finance Minister François-Philippe Champagne requesting two measures: an exemption from all retaliatory tariff costs on contracts signed before September 8, and a dedicated municipal tariff relief fund for contracts awarded after that date.

What is Calgary asking Ottawa for?

Under existing federal programs, municipalities must apply for relief through third-party suppliers or contractors — a structure the letter calls unworkable. "Municipalities face many of the same tariff-related pressures as businesses when delivering large-scale infrastructure projects, yet they are reliant on third parties and suppliers to apply for the current tariff relief programs available and reimburse their municipal government customers," the letter reads. With tariff costs embedded in supply chain pricing, the city says it cannot identify or recover them.

How big is the exposure?

Amit Patil, Calgary's director of supply chain management, told councillors the $308 million total reflects unmitigated risk and assumes tariffs stay in place for each contract's full lifecycle. The city has already spent $1.2 million on tariff-related costs since the trade dispute began in February 2025 and is negotiating contracts that could add another $5.7 million. Calgary's annual procurement budget runs at roughly $2 billion.

Steel, aluminum, copper wire, stainless steel and fabricated construction materials account for most of the cost pressure. Projects flagged for tariff exposure include water pipeline construction, fire trucks and associated equipment, light-rail transit vehicles and the Scotia Place event centre.

How is Calgary reducing the risk?

Patil said the city is diversifying suppliers, timing purchases, inserting tariff clauses into contracts and validating supplier cost claims. It is also partnering with the Federation of Canadian Municipalities to lobby Ottawa for broader relief.

Ward 2 Coun. Jennifer Wyness said the federal government is "out of touch on the cost of infrastructure" and warned that without partnership, the city cannot close its infrastructure gap. "When we start showing these numbers, it really shows how out of touch the federal government is on the cost of infrastructure, as well as the province," she said. "I think we need to work on clear communication to show those with the bigger bank accounts how their policies are harming our municipality."

What relief has Ottawa offered so far?

Champagne's press secretary, John Fragos, called American tariffs on Canadian exports "unjustifiable" and pointed to $28 billion in Canadian retaliatory countermeasures on US goods, alongside a "Buy Canadian" procurement policy. He said Ottawa provides remissions on Canadian counter-tariffs to impacted businesses and municipalities, with horizontal remissions reserved for goods used by public health, safety and national security entities, steel for automotive and aerospace manufacturing, and non-steel goods in manufacturing, processing, food and beverage packaging, and agriculture.

Where remissions do not apply, a separate framework lets municipalities seek surtax relief in "specific and exceptional circumstances," including cases where inputs cannot be sourced domestically or via non-US suppliers. Importers can also pursue relief through the Import Re-export Program, Duties Relief or Duty Drawback Programs.

Fragos said Ottawa has provided $59 million to Calgary initiatives this quarter alone: $29 million for the North Calgary Water Servicing Project, $26 million to modernize the Olympic Oval and $3.35 million for Indigenous-led crime prevention programs.

What comes next?

The mayor's letter now goes to Champagne. Whether Ottawa opens a direct municipal relief channel or sticks with supplier-level remission frameworks will determine how much of that $308 million risk Calgary ultimately absorbs across the lifecycle of its steel, aluminum and rolling-stock contracts.