Ontario Construction News staff writer
Prime Minister Justin Trudeau’s announcement that Canada will impose a 25 per cent tariff on all American goods in response to U.S. President Donald Trump’s tariff plan starting on Tuesday, has sparked serious concerns within the Canadian construction industry and warnings that tariffs will have a significant and detrimental impact on projects across the country.
“We are obviously concerned a by the overall impact on the economy as in construction alone we are talking about tens of billions of dollars of trade each way,” RESCON President Richard Lyall told Ontario Construction News on Saturday. “With respect to housing costs, no one benefits from an arbitrary increase in material and product prices.
“Residential construction is already challenged.”
RESCON is part of a broad-based industry coalition that will be providing the government(s) with advice and guidance.
“The reason for the US action is clearly not justified as stated,” Lyall said. The US action is a high risk, ill-advised effort by the US to increase revenues and offset tax cuts.”
The construction sector, which accounts for 7.5 per cent of Canada’s GDP, stands to face significant price hikes and supply chain disruptions if the tariffs are fully enforced.
“We represent a substantial part of the Canadian economy,” CCA President Rodrigues Gilbert said in a BNN Bloomberg interview on Jan. 29. “If the government responds without a balanced approach, we will face a massive increase in material costs and potential disruptions in the supply chain. Everything we do will cost a lot more, and in the end, Canadians will pay the price.”
The private sector is planning more than $227 billion worth of construction projects this year, while the public sector has $139 billion in planned investments. A 25% tariff increase, Gilbert warned, could make it impossible to move forward with projects.
“We are going to face a massive increase in material costs and possible disruptions in the supply chain,” Gilbert said. “Everything we are doing will cost a lot more and in the end Canadians will pay for it.”
About 30 per cent of Canada’s construction materials come from the U.S., including wood, steel, aluminum, and essential materials for roads, bridges, piping and electrical systems.
Keanin Loomis, President and CEO of the Canadian Institute of Steel Construction issued the following statement on Saturday:
“The Canadian Institute of Steel Construction is disappointed with today’s announcement that the United States has invoked the International Emergency Economic Powers Act (IEEPA) to implement a 25 per cent additional tariff on imports from Canada and Mexico, with a 10 per cent tariff on Canadian energy resources.
“Specifically, our steel industries are closely intertwined with fabricators and manufacturers relying on trade between our two countries to deliver vital products and services. These tariffs, and potential retaliatory tariffs on these products, will hurt both economies and disrupt our integrated supply chains.”
CISC anticipated the announcement, Loomis said, urging the government to introduce financial support for workers and businesses in the sectors most heavily affected by the tariffs on cross border trade, including steel fabrication and construction.
