Ontario municipalities could face cuts to provincial funding if they fail to comply with “Buy Ontario” procurement requirements amid a trade war with the U.S., warned Minister of Municipal Affairs and Housing Rob Flack Wednesday.
In a letter to 444 municipalities, the minister said local governments must maximize the use of Ontario and Canadian goods and services as the province responds to U.S. tariffs and other trade measures.
Ontario municipalities spend more than $22 billion each year on goods and services and the province says those purchases should prioritize Ontario and Canadian products.
“Failure to comply with Buy Ontario requirements will force us to reconsider provincial funding made available to municipalities, in addition to other consequences under the Buy Ontario Act,” the minister wrote.
Ontario’s Premier Doug Ford also shared the letter to social media, writing “Buy Ontario. Buy Canadian. For governments across Ontario, it’s not an option. It’s the law.”
At a separate press conference the premier also added that Ontario has gave Toronto “more money than they’ve ever seen in their lives,” estimating “over $9 billion.”
He says the province wants to remind municipalities that they should “buy Ontario first, buy anywhere else in Canada if you can’t buy it in Ontario.”
For now, municipalities have been directed to review their supply chains, procurement practices and upcoming purchases to determine whether products and services currently sourced outside Canada can be replaced with domestic alternatives.
The Buy Ontario Act was first made law in November 2025. The policy was expanded to cover spending by municipalities in April.
