As U.S. President Donald Trump threatened and Prime Minister Justin Trudeau pledged, Canada and the United States may be entering a trade war with expected damaging consequences to local economies, housing, jobs and communities. With or without tariffs, the Canadian Urban Institute (CUI) suggests this crisis offers another opportunity – very similar to the recent global pandemic – for an urgent call to action to make local economies stronger and more resilient to global geopolitical events over which we have little control.

Local economies faced similar, daunting challenges before, CUI President and CEO Mary W. Rowe said. “During the COVID pandemic lockdowns, main street and downtown businesses pivoted quickly to online portals and local delivery services, repurposed sidewalks and streets, and created new activities to restore the vibrancy of their shared spaces. Recovery has depended on a collective sense of purpose and urgency from all levels of government, businesses, nonprofits and consumers.”

Since then, the real estate development sector and its investors and regulators also quickly looked for ways to introduce more housing options into downtowns and main streets, creating more complete neighbourhoods.

“During the economic crisis during COVID, Canadian businesses, thought leaders, academics, local politicians and consumers united to find innovative ways to protect and support local economies,” said Rowe. “The decisive actions we collectively took during the pandemic were pivotal in bolstering the capacity of local economies to swiftly adapt to new challenges, ensuring their competitiveness and viability.”

The threat of tariffs presents a formidable new challenge, Rowe said, but the critical lessons learned during the pandemic taught us that together “we can overcome with resilience and determination and create the needed changes to future-proof our local economies.”

As they did during the pandemic, CUI is gathering and distributing solution-focused actions governments, businesses and BIAs, city builders and individuals can implement today – with or without tariffs – to make local economies stronger and resilient. CUI is also bringing together thought leaders across the country and distributing resources that provide armour to protect against the local impact of a trade war.

Canadians can act:

Buy local and shift our spend. Three quarters of Canadians live within a kilometre of their main street. Millions of us can walk, roll, or ride there, and focus our household spending locally on products and services. Order directly from local businesses, including equity-deserving and Indigenous companies, and pick it up or engage a local delivery service.

Build economic literacy. Identify products and services we are currently purchasing from offshore sources and find (or develop) a locally produced product or service.

Replace U.S. customers. CUI has Measuring Main Street tool to help companies determine where their future local customers are and develop marketing strategies to convert them from neighbours to customers.

Aggregate purchasing. Local neighbourhood buying clubs, co-ops and business associations reduce the price of inputs by buying larger quantities on behalf of smaller businesses. Join one or form one.

Thrift. Purchase less new. Recycle and reuse, support thrift and vintage outlets, especially ones owned by non-profits and charities. Gather with your neighbours. Economies are about reciprocal flows – this is one way to optimize them.

Invest in placemaking. Outdoor art events and festivals are inexpensive to produce relative to the economic and social benefits they bring to downtowns and main street neighbourhoods. Look to Montreal’s Quartier de Spectacles as an example.

Invest in existing buildings and available land. Although 60-80 percent of vacant downtown office stock may not be suitable for housing, they could be adapted for other uses. Governments need to fund adaptive reuse innovation, accelerate approvals, lift redundant rules, and incentivize investments to explore opportunities for re-shoring manufacturing.

Adjust procurement rules. Government rules and policies should favour local products and services. Increasing demand for local services will strengthen capacity to compete.

Property and sales tax relief for local businesses. In addition to economic benefits, vibrant main streets deliver significant public good benefits and long-term cost savings, justifying public subsidies.

Make money cheaper. Require lending institutions and economic development agencies, including impact investors, to develop new financial instruments to support non-exporting business development.

Boost local and global tourist visits. Sustainable tourism attracts local, national and international visitors to spend money in local places.

Infrastructure our future. Canada’s infrastructure deficit is already in the hundreds of billions. Pivot public and private investment into building key infrastructure for the future, while creating good jobs now.

Place-specific actions. Abandon one size fits all approaches, where effectiveness and accountability are both obscured. Invest, instead in locally driven, funded solutions.