Regrettably, Canada finds itself in a tariff war with the United States, following President Trump’s poorly-considered decision to put a blanket 25% tariff on Canadian goods entering his country. Canada is now rolling out reciprocal tariffs – a tax on American items coming into the Canadian market.
This is a fast-moving file with news breaking constantly, but the first Canadian reciprocal tariffs include the $3.1B in home appliances brought into Canada from the U.S. It also includes some wood and wood products, nails, screws, and other metal fasteners, and certain construction tools and machinery.
However, the second phase of retaliatory tariffs – tentatively set for three weeks from now – will likely include steel and aluminum. These products flow across the 49th parallel constantly. Experts says Canada exports $20+ billion in steel and aluminum to the U.S. annually, but also imports $17 billion back from the Americans (shipping and supply issues mean different regions of the continent source steel differently).
And there are many other construction items on the retaliatory tariff list – which will be phased in over the next few weeks, unless President Trump abandons his destructive tariff scheme.
THIS WILL HAVE A VERY NEGATIVE EFFECT ON CANADIAN CONSTRUCTION, first by likely plunging the country into an economic recession, and with cost escalation on many building products, including:
- Increased Material Costs: Lumber, plywood, engineered wood, and flooring will see price hikes, affecting framing, flooring, and interior finishes.
- Higher Fixture Prices: Windows, doors, locks, and lighting fixtures will become more expensive.
- Higher Construction Hardware Costs: Fasteners, plumbing, and electrical components will rise in price, making overall construction projects more costly.
- More Expensive HVAC & Appliances: Heating, cooling, and kitchen appliances may increase in price, impacting residential and commercial projects.
Today is also B.C. Budget Day – Watch for more analysis of the Budget and these tariffs from our ICBA team this afternoon. STAY TUNED!!!!
