FILE PHOTO

(LEVI LANDRY / iNFOnews.ca)

Don't expect the threat of American tariffs to derail $275 million in planned loans for new Kamloops facilities.

City budget planners are bracing for the impacts a trade war with the Canada's biggest trading partner and what it would mean for Kamloops taxpayers, but it won't stop planning for a new arts venue and arena.

"The conversation is obviously really immature. We don't know what's going to happen," city manager Byron McCorkell said. "So, our planning process continues, our intentions remain the same."

At a Feb. 4 Kamloops city council meeting, McCorkell said the downtown arts centre is still being designed, while any purchase commitments are at least six months to a year away.

It also depends on the ongoing court challenge that seeks to overturn the City's counter petition process, chosen over a referendum, that got approval from taxpayers to borrow the combined $275 million loans.

READ MORE: B.C. fast-tracking 18 mining and energy projects in face of U.S. tariff threat

Canada is poised to respond to the U.S. President Donald Trump's 25 per cent tariff equally, meaning goods coming over the border are sure to get more expensive. If Trump follows through after a 30-day delay, that's going to affect City coffers.

Just how much that could affect the budget isn't clear, but the City's head of corporate services David Halinan said staff are looking at how already committed purchases might be affected.

For example, two new firetrucks on their way to Kamloops won't be hit by tariffs, but their tires will. He said tires for the City vehicle fleet would also be hit by tariffs as the go-to Goodyear brand comes from the U.S.

READ MORE: Opposition parties call for Parliament's return after Trump hits pause on tariffs

There are currently no requirements for local governments in BC to buy Canadian products, but it's something at least one councillor suggested.

"I really don't think we should be supporting someone that's trying to penalize us," councillor Bill Sarai said of Trump and his tariff threat.

In Ontario, the province is prioritizing procurement from within the country and urged cities to do the same.

That hasn't happened so far in B.C., and Halinan said staff are tasked with finding the "best value" for the product that's needed, whether it's building materials, specialty parts for City facilities, tires or road paint. If a U.S. product is still cheaper after the tariff than one from Canada or Europe, for example, Kamloops taxpayers might still pay for it.

He added that even deals the City has through Canadian businesses may not isolate taxpayers from tariff costs as that could still include tariffs if the product, whether in part or as a whole, is sourced from the U.S.

The 30-day extension was announced Monday afternoon, Feb. 3, just before they were supposed to come into effect.

— With files from The Canadian Press.

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