Canadian Design and Construction Report staff writer
The Canadian Construction Association (CCA) is warning that Canada’s latest retaliatory tariffs could increase construction costs and disrupt projects because the industry relies heavily on imported materials.
The association says the new measures double tariffs on U.S. steel and aluminum from 25 per cent to 50 per cent, including structural and derivative products. Tariffs on lumber, plywood and other construction wood products remain in place at rates ranging from 25 to 50 per cent.
“We urge the federal government to continue working with Canada’s exporting and importing industries most affected by both U.S. and Canadian tariffs to ensure the needs of affected industries are accounted for,” the organization said in a social media statement. “Simultaneously, we must continue to strengthen Canada’s domestic supply chains, and build the major projects needed to bolster our domestic economy.
According to 2024 supply-and-use data cited by the CCA, about 60 per cent of manufactured inputs used in Canadian construction are sourced domestically, while 25 per cent come from U.S. producers.
The exposure is particularly high in engineering construction. In the communications and oil and gas subsectors, roughly 40 per cent of inputs come from the United States, exceeding the domestic share.
CCA says Canada does not produce every type of steel required by the construction industry, meaning some products affected by the tariffs cannot easily be replaced with domestic alternatives.
The federal government is providing tariff relief for 179 steel mill products that are not produced in Canada.
The CCA says those exemptions will help contain some of the costs of the retaliatory measures, but warns the broader tariffs will still have consequences.
“Nevertheless, these measures, and the foreseeable escalations, will cause significant disruption across Canadian job sites, delaying projects and raising costs,” the association said.
The CCA says the disruption could ultimately hinder Canada’s ability to build the infrastructure, housing and trade corridors needed to support economic growth.
