Canada Needs a Strong Economy
Tariffs Have Arrived. Where Do We Go From Here?
While large-scale changes unfold on the world stage, it’s our main streets, businesses, and neighborhoods that feel the immediate consequences. These shifts affect jobs, housing, business health, and so much more.
As trade tensions between Canada and the U.S. rise, the fallout threatens local economies. However, in every crisis lies an opportunity. The Canadian Urban Institute (CUI) believes this moment is a wake-up call for reimagining local economies to make them more resilient to global forces.
The Main Street Solution
To future-proof Canada's economy, we must diversify trade, strengthen local supply chains, and break down barriers like interprovincial trade restrictions. The goal is an adaptable economic system that prioritizes local stability while staying globally competitive.
At CUI, we have been focused on strengthening local economies for over a decade, and we're helping lead the way in making a true impact.
This website is designed as a living resource for governments at all levels, the business community and individuals who want to support their local economy. Whether its our Tariff Impact Tracker sharing month-over-month and year-over-year impacts on communities small and large or highlighting innovative ideas and solutions at the local level or speaking to media and hosting CityTalk Live with experts, CUI is a guide and facilitator through the challenges ahead.
Immediate Actions We Can Take
Rethinking “Buy Local” to “Shift Your Spend”
Amid growing tariff threats, millions of Canadians have embraced the "buy local" movement. But this concept goes beyond just avoiding foreign goods. It’s about making sure our spending circulates within our local economies.
Supporting Canadian businesses isn't just about avoiding foreign brands—it’s about ensuring money stays within our communities. When we invest in local businesses, we directly impact wages, public services, and overall economic health.
The Power of Supporting Local:
- Local businesses spend 31.4% of their revenue on local products and services.
- They donate 24 times more per dollar of revenue to local charities than multinational corporations.
Supporting local businesses strengthens the community, sustains jobs, and helps build a more resilient economy. The ripple effect of shopping on main street is far greater than ordering from chain stores or online retailers.
Investing in Quality of Life = Investing in Economic Resilience
Communities that prioritize quality of life are more resilient to economic shocks. Here's how:
- Attracting Talent: Vibrant main streets and green spaces draw skilled workers and entrepreneurs.
- Supporting Local Businesses: A thriving local business ecosystem reduces dependence on global supply chains, ensuring self-sustaining growth.
- Encouraging Economic Diversification: Communities with diverse industries remain adaptable and less vulnerable to single-industry downturns.
- Increasing Property Values: Well-maintained public spaces and bustling main streets drive up property values, benefiting the local economy and increasing municipal revenues.
- Reducing Public Costs: Walkable communities improve public health, lowering healthcare costs and boosting social cohesion.
Investing in public spaces, placemaking, and infrastructure strengthens our communities, ensuring long-term prosperity.
Lessons from COVID-19: A Blueprint for Action
The COVID-19 pandemic showed us just how quickly local economies can adapt. During lockdowns, businesses pivoted to online platforms and local delivery services, while communities found innovative ways to repurpose public spaces and restore vibrancy. These collective efforts proved that local economies, when supported by businesses, governments, and consumers, can quickly bounce back from crises.
Now, with the potential threat of tariffs looming, CUI is once again mobilizing resources, bringing together thought leaders, and developing actionable strategies to future-proof local economies.
How You Can Make an Impact
- Shift Your Spend: Three-quarters of Canadians live within a kilometer of a main street. Prioritize spending at independently owned businesses, order directly, and use local delivery services.
- Build Economic Literacy: Learn to identify locally produced alternatives to offshore products and support Canadian industries.
- Support Local with Intent: Join co-ops, neighbourhood buying clubs, and local initiatives that drive demand for Canadian products and services.
- Invest in Placemaking: Outdoor events, street art, and local festivals drive economic and social benefits while enriching the community.
- Repurpose Vacant Spaces: Governments must support adaptive reuse projects, transforming empty buildings into thriving spaces for business and community activities.
- Adjust Procurement Rules: Advocate for government policies that prioritize local products and services, strengthening domestic supply chains.
A Call to Action
At CUI, we are leading the charge to make local economies more resilient. Through research, advocacy, and collaboration, we’re equipping communities with the tools needed to withstand trade disruptions and global challenges.
Now is the time to bring back main street—not just as a response to tariffs but as a long-term strategy for economic sustainability.
Your choices matter. Shift your spend. Strengthen your community. Secure Canada’s future. Together, we can protect and empower local economies to thrive amidst global challenges.
