TIMMINS - Tariffs are on the minds of local leaders.
The potential impact of the looming trade war with the United States worked its way into the discussions at the Feb. 4 Timmins council meeting.
Members were asked to approve buying four new trucks and a contract to modify garbage trucks. Both decisions were deferred to see if the contracts could be altered or if the city could walk away if tariffs are imposed.
“At the end of the day, the problem we face is the delay on delivery and by pushing back the decision it’s going to mean that we may not have this equipment in time for when we need it," clerk Steph Palmateer told council.
"Short-term we could rent vehicles and we could lease vehicles, but that’s not a long-term solution for the City of Timmins and I really don’t think it’s going to make a difference if you purchase the vehicles now or if wait six months. If tariffs are coming, tariffs are coming."
The deferred items were a $389,920 deal with Gin-Cor Industries to modify two city-owned garbage trucks into snow plow/sanding trucks, and a $445,340 contract with Cambrian Ford Sales to buy four landscaping trucks.
When the company that supplied the co-collection trucks went bankrupt, manager of fleet and purchasing Gord Deacon said the city was left "in a bind" by not being able to get parts, service or warranty.
The modification work would be done in Mattawa. The co-collection bodies would be removed and sold in an online auction, giving Gin-Cor a bare cab/chassis to install the new bodies.
The elephant in the room at the meeting was tariffs.
While U.S. President Donald Trump paused tariffs for 30 days last week, on Monday he signed an executive order imposing a 25 per cent tariff on all aluminum and steel imports into the States, including those from Canada.
Deacon has talked to the vendors for the project, and stainless steel and snowplows are typically not found on snowplows.
The same isn't true for the new pick-up trucks.
They're scheduled to replace two city-owned public works trucks that are at the end of life, and two rented public utilities trucks.
“Supply chain woes from the past few years plagued the market for quite a long time. Renting the units noted that are being replaced wasn’t the most desirable option for us at the time. I would like to say to council that it wasn’t for a lack of effort as these were scheduled to be replaced sooner,” Deacon told council.
A 2022 tender for vehicles didn't solicit any submissions. When the vehicle market started to rebound recently, the tender was reissued.
The vendors and manufacturers don't have a tangible answer to the impact of tariffs, said Deacon.
“The specific trucks, the chassis themselves are being manufactured in the States, meaning that that component could face tariffs,” he said. While the landscaping body and unfitting work would be done in Canada, it's not clear if the parts needed would be impacted.
If the purchase is approved and tariffs are applied after, adding to the cost, Deacon said the city may be able to negotiate, but typically taxes and duties are passed on to the consumer.
Given the current climate, where Coun. Steve Black said an individual may wake up and decide to turn an ally into a foe, he talked about adding protective criteria into bid packages.
"We can’t give geographical preference by our own Ontario law, but we can put clauses about risk and score associated with risk of cost inflation or risk other matters that therefore tend to favour products of Canada versus products of countries that are toying with tearing us on a day-on, day-off basis of the current administration,” he said.
While Palmateer understands the anxiety over potential tariffs, he doesn't think delaying the decision makes a difference.
"There are only a handful of vehicles that are produced entirely in Canada, the majority of our vehicles — and especially heavy duty and large equipment like this — the majority of parts and components come from other countries, primarily the United States. Our auto sector is tied so closely to the United States that, it’s hard to imagine what 25 per cent tariffs will do to the American auto industry," he said.