Navigating U.S. Tariffs: How OECM is Supporting Public Sector Procurement

Updated as of March 19, 2025

With the ongoing threat of tariffs imposed by the United States and the implementation of 25% retaliatory tariffs on certain U.S. goods now in effect, public sector organizations across Ontario—including many of OECM’s customers and partners across education, municipalities, healthcare, and government—are facing new challenges that could impact procurement strategies, operational budgets, and the delivery of essential services. OECM recognizes the potential risks posed by these trade actions, from rising costs to supply chain disruptions, and we are committed to supporting our customers through proactive, strategic procurement solutions.

Taking a Collaborative and Proactive Approach

As a trusted not-for-profit group purchasing organization (GPO), OECM is dedicated to delivering customer-centric, value-driven procurement solutions. In response to these evolving trade conditions, we are taking decisive action to ensure our customers have the information, resources, and support they need. Here’s how:

• Supplier Engagement: We are collaborating with suppliers across affected categories to assess potential price fluctuations, supply chain challenges, and alternative sourcing options.
• Internal Risk Assessment: A cross-functional OECM team has been working over the last few months and continues to analyze the impact of these tariffs on our agreements to identify sustainable solutions.
• Collaborative Advocacy: We are working closely with partner GPOs, government allies, and industry organizations to advocate for a unified response that supports the broader public sector.
• Contingency Planning: We are engaging suppliers in strategic contingency planning to mitigate potential supply chain disruptions.
• Transparent Customer Guidance: We are committed to keeping our customers informed with up-to-date insights and recommendations to help navigate these changes effectively.

OECM’s Approach to Managing Tariffs

To help customers navigate these challenges effectively, OECM has conducted an initial assessment of all agreements potentially impacted by tariffs and will continue to monitor the landscape and update the list. Below is the list of OECM agreements that may be affected due to products manufactured or imported from the U.S.:

Facilities Portfolio:

• Custodial and Janitorial Supplies, Equipment, and Related Services
• Educational Furniture and Related Services
• Electrical Products
• Facilities Maintenance, Repair and Operations Products and Related Services
• Modular Buildings and Portable Classrooms
• Office Space Furniture and Related Services
• Plumbing and Heating, Ventilation, and Air Conditioning (HVAC) Products
• Residence Furniture and Mattresses

Education Portfolio:

• Apparel and Related Products and Services
• Dental Supplies, Small Equipment and Related Services
• Lab Animal Feed and Supplies
• Laboratory and Science Supplies
• Marketing and Promotional Products
• Office Supplies and Fine Copy Paper
• Sports and Special Needs Products

Information Technology (IT) Portfolio:

• End-User Computing Products and Related Services
• Multi-Function Devices and A4 Printers
• Networking Products and Related Services
• Supply and Installation of Digital Signage, Digital Scoreboards and Audio-Visual System Solutions

Maintaining Transparency Without Agreement Amendments

OECM will not be making any changes to Master Agreements (MAs) or Customer Supplier Agreements (CSAs) in response to tariffs. Instead, to ensure clarity and transparency, we are requiring suppliers under validated agreements to clearly separate the tariff amount from the cost of the Resources ordered by the Customer on their invoices.

This detailed tariff breakdown provides customers with complete visibility into tariff-related costs, enabling you to manage budgets better and maintain effective procurement planning without unnecessary pricing uncertainties.

Additionally, OECM has reinforced this directive with all suppliers, emphasizing that:

• Suppliers should not amend their CSAs or request a price refresh solely due to tariffs.
• Any price escalation requests must be submitted to OECM for review and will be evaluated based on supporting evidence and proper validation from the supplier.
• OECM reserves the right to approve or decline these requests, ensuring that all tariff-related adjustments remain justified, controlled, and transparent.

The list of agreements potentially impacted by tariffs will be regularly updated as developments unfold and shared with customers to ensure they always have access to the most current and relevant information.

Exploring Alternative Procurement Strategies

If customers are seeing significant surcharges applied to products that they traditionally purchase from their supplier due to tariffs, there are several options to consider:

1. Engage Your Supplier for Alternative Product Options – Many suppliers may offer comparable products manufactured in Canada or other non-U.S. regions, which could help mitigate additional tariff costs. Connecting with your supplier to explore these alternatives can be a cost-effective and proactive approach to managing procurement expenses.
2. Leverage OECM’s Multi-Supplier Agreements – Most OECM agreements are multi-supplier awards, meaning customers have the option to engage multiple suppliers under the same agreement to obtain competitive quotes for the same or similar products. If one supplier’s products are experiencing higher tariff-related costs, another supplier within the agreement may be able to provide lower-cost alternatives that better align with your budget and procurement strategy.
3. Utilize the OECM Marketplace for Second-Stage Competitions or Direct Negotiations – OECM’s Customer and Supplier Relations Management Teams are available to support customers who wish to engage other suppliers within the agreement by facilitating second-stage competitions or direct negotiations through our Marketplace. This allows customers to compare pricing, explore alternative sourcing options, and secure the most cost-effective solutions tailored to their specific needs.

Ensuring Stability in an Evolving Landscape

More than ever, procurement decisions are critical in maintaining budget stability and ensuring service continuity. OECM remains committed to supporting customers through these evolving trade conditions, ensuring you have the flexibility, supplier options, and procurement strategies necessary to navigate tariff-related cost fluctuations effectively. OECM also remains steadfast in our mission to provide high-quality, cost-effective procurement solutions that empower Ontario’s public sector. By fostering collaboration, exploring innovative sourcing strategies, and leveraging our collective purchasing power, we can work together to minimize disruptions and maintain procurement excellence despite these economic uncertainties.

OECM will continue to monitor developments closely and provide timely updates to our customers and partners. Together, we can navigate these challenges and continue to drive value for Ontario’s public sector.

If you have any questions or concerns about how these tariff changes may affect your procurement needs, please reach out to our dedicated Customer Support team: 

Email: customersupport@oecm.ca
Phone: 1-844-OECM-900 (1-844-632-6900)