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Ontario threatens to cut funding to municipalities if they fail to ‘Buy Ontario. Buy Canadian.’
Municipalities are told to prioritize Ontario and Canadian suppliers or risk losing provincial funding as the province responds to U.S. tariffs.
On Wednesday, Minister of Municipal Affairs and Housing Rob Flack warned Ontario's 444 municipalities that failure to comply with Buy Ontario procurement rules could force the province to reconsider provincial funding.
The directive, which applies to infrastructure and fleet spending, aims to shield Ontario's economy as U.S. tariffs threaten steel and automotive manufacturing; the province oversees $25 billion in annual public-sector procurement.
Association of Municipalities of Ontario president Riley Brockington noted that over 98 per cent of non-construction procurement was already Canadian, though he warned the new rules add "time, cost and complexity" to operations.
Official Opposition Leader Marit Stiles criticized the government, alleging it ignores its own mandate by awarding contracts to American firms like Staples instead of prioritizing local businesses.
Victoria Mirlocca, chair of the Ontario Public Buyers Association, said municipalities are developing frameworks to improve local sourcing, though information technology procurement remains a significant hurdle for compliance.