Ontario Construction News staff writer
United States President Donald Trump says he plans to slap Canada and Mexico with 25 per cent across-the-board tariffs starting Feb. 1.
“We are thinking in terms of 25 per cent on Mexico and Canada because they are allowing vast number of people, Canada is a very bad abuser also, vast numbers of people to come in and fentanyl to come in,” Trump reporters Monday night.
The February date comes after Trump officials, speaking anonymously, suggested to reporters that the Republican president would only sign a memorandum telling federal agencies to study trade issues, including alleged unfair trade and currency practices by Canada, Mexico and China.
“Instead of taxing our citizens to enrich other countries, we will tariff and tax foreign countries to enrich our citizens,” he said during his inaugural address.
Tariffs would impact infrastructure development across Canada, threatening to drive up costs and disrupt projects, adding to quickly rising domestic and international costs for materials critical to infrastructure development.
Premier Doug Ford responded to Trump’s statement saying U.S. tariffs on Canada would be “devastating for both of our economies, hurting workers and businesses on both sides of the border.
“President Trump seems intent on starting a trade war that will create the kind of economic uncertainty that only benefits China.
The Canadian Infrastructure Council (CIC) has been created to assess infrastructure needs, identify investment priorities and provide evidence-based guidance for building Canada.
A key first step will be completing a supply chain vulnerability audit to identify where Canada’s infrastructure sector could be hurt most.
According to BuildForce Canada, investment in the construction of public infrastructure will top $160 billion over the next four years and investment is expected to spike between 2026 and 2028, driven by a global market recovery and sustained demand for health care, transportation and energy.
To counter external pressures and protect Canada, the CIC suggests:
- Leveraging insights from the U.K.’s national infrastructure commissionguidance during Brexit by recommending diversification of material sourcing through strengthened trade partnerships in Europe and Asia.
- Identifying interprovincial trade barriers in the construction sector that could be addressed to boost sector productivity.
- Incentivizing domestic production of critical materials such as rebar and structural steel to enhance resilience.
- Presenting a cost-benefit analysis recommending targeted measures, including temporary subsidies or tax incentives, to offset material cost increases.
- Streamlining permitting processes to enhance local manufacturing and bulk procurement agreements to stabilize prices.
