The expected impact of U.S.-imposed tariffs on the local economy has Chatham-Kent staff taking precautions.
Municipal administration has implemented a short-term pause on posting any new tenders for vehicle purchases until staff can review and understand the full impact of the tariffs.
During a special meeting on March 6, CK Council passed a multi-item resolution, which instructed the administration to review supply chains for major purchases and products that could be impacted by the tariffs. It also asked staff to examine and report back to council on legal options for adjusting contracts and procurement processes to reduce Chatham-Kent’s exposure to tariffs.
Because vehicles are a high-risk item that could be impacted by tariffs, the temporary freeze was put in place on tender requests.
“Administration wants to be sure the picture is clear and contract language correct before proceeding,” said CK Public Works Director Ryan Brown in an email. “Hopefully in the next few weeks, the picture going forward is clearer and we can adjust our tenders accordingly. If cost impacts are expected to be high for vehicles we may need to report back to council for direction before proceeding.”
Chatham-Kent’s Public Utilities Commission (PUC) is one department that will have to wait before moving forward with vehicle purchases.
During a meeting last week, the PUC submitted an annual report requesting approval to tender the replacement of three vehicles with high mileage for small hybrid SUVs that are more fuel efficient. While the report was approved, tendering will not take place until the temporary pause has been lifted.
