The City of Toronto plans to defer industrial property taxes for six months to help businesses manage the financial strain caused by the new U.S. tariffs on Canadian imports.

The initiative is part of Mayor Olivia Chow’s economic action plan, which she unveiled Monday at a fire station.

“It will create a more resilient economy so we emerge from this trade war, even stronger and more united,” said Chow.

Pending city council approval expected at the end of March, eligible industrial property owners will be able to defer tax payments from June 1 to November 30, 2025, without incurring late fees or interest charges. The program, expected to cost between $300,000 and $750,000, requires businesses to apply and demonstrate significant financial hardship due to the tariffs.

“It’s money back into cash flow, and it’s a holiday from fees,” said Toronto Board of Trade Chair Yung Wu during the news conference. “That is breathing room in order to adapt.”

Additionally, the Mayor’s Economic Action Plan calls for the city’s procurement policies to support Canadian businesses and reduce exposure to the U.S. tariffs.

Under the revised guidelines, new city construction projects valued under $8 million and goods and services worth less than $353,300 will be awarded exclusively to Canadian suppliers. The changes also allow the city to deem American-based suppliers ineligible to bid when it serves Toronto’s best interests.

Increased supplier outreach efforts will focus on securing local alternatives for key goods such as construction materials, technology, and municipal equipment. Chow’s plan is among many strategies intended to increase Canadian unity in the wake of the tariffs and U.S. President Donald Trump’s frequent musings on annexing Canada.

“Canadians have never been more united,” said Chow. “We will never be the 51st state. We are stronger together as Canadians, we care for each other, we look after each other, we have each other’s back, and we will support local businesses by shopping local and buying Canadian.”

Additional measures in her action plan include launching a Love Local campaign to encourage the purchase of Canadian-made goods, expanding global markets for Toronto businesses, and increasing procurement opportunities for Indigenous, Black, and diverse suppliers.

The plan will be reviewed by the city’s executive committee on March 19 before moving to city council for final approval.

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