Ottawa Mayor Mark Sutcliffe has raised alarms about the potential impacts on the downtown economy due to significant federal job cuts and looming U.S. tariffs. The federal government plans to eliminate 3,300 positions at Immigration, Refugees and Citizenship Canada (IRCC) over the next three years, which Sutcliffe believes could exacerbate economic challenges in the city [c7a20c30].
Sutcliffe emphasized the need for more residents and attractions in downtown Ottawa to stimulate the local economy. He pointed out that the federal government is also planning to reduce its office portfolio by 50%, converting underused buildings into housing, backed by a $1.1 billion budget starting in 2024-25 [c7a20c30].
In addition to the job cuts, Sutcliffe expressed concerns about potential U.S. tariffs under President Trump, warning that these could lead to a trade war and create further economic uncertainty for Ottawa [c7a20c30]. He advocates for increased private sector investment to diversify the economy and mitigate these risks.
The 2025 budget includes a 2.9% property tax increase, which is lower than increases seen in other major cities. Sutcliffe noted that Ottawa's average property tax increase over the past three years has been less than 3%, stressing the importance of economic growth for the city's future [c7a20c30].
These developments come at a time when Sudbury, Ontario, is also facing challenges due to the impending U.S. tariffs, which could reach as high as 25% on Canadian goods starting January 20, 2025. Analysts warn that these tariffs could significantly impact Sudbury's economy, potentially leading to job cuts and increased inflation [26decb0c]. Sudbury is a critical player in Ontario's mineral exports, providing a substantial portion of the U.S. nickel supply, which is essential for various industries, including aerospace and defense [26decb0c].
As both cities navigate these economic challenges, the interconnectedness of their economies with the U.S. market is becoming increasingly evident, highlighting the need for strategic responses to safeguard local jobs and economic stability [26decb0c].