TIAC urges members to take action and stay informed on Canada’s response to tariffs
By / Robin Brunet with notes and resources from TIAC
The only sure thing in these tariff-driven times is that United States president Donald Trump is a master at fomenting uncertainty. His actions against Canada have caused speculation that everything from a more equitable realignment of free trade to an outright global depression is forthcoming.
Ever since Washington imposed a 25 percent tariff on imports from Canada and Mexico on March 4, the Canadian construction industry joined the angry chorus of voices to express what may lie in store for them. “These measures are likely to impact not only the ability of construction operators to meet their project requirements, but also the supply chains that the Canadian industries rely on,” stated the Canadian Construction Association. “This limits the industry’s ability to combat the housing crisis, it slows down its ability to build critical infrastructure, and so much more.”
Of equal concern is the prospect of retaliatory Canadian tariffs on American construction materials brought into this country (we import some $3.5 billion in glass and glass products, for starters). Canadian Home Builders’ Association CEO Kevin Lee believes an emphasis should be placed “on avoiding tariffs on construction products and materials, unless other domestic or import solutions can be easily found for comparable prices.”
For its part, the Vancouver-based BTY Group examined six categories of construction materials at risk of the tariffs and concluded that construction costs could go up by between four and six percent. It also postulated that if potential retaliatory tariffs were taken into account and remained in effect for an extended period, a disinflationary trend would occur as demand falls and activity slows (in which case costs would go down).
As for BTY’s ranking of at-risk materials, lumber is considered a high risk, as are mechanical and electrical systems. In the medium risk category is rebar, due to some reinforcing steel production in Canada and the ability of bigger firms that buy supply from the United States to pivot to sources at home. BTY considers concrete to be steady and glazing to be a low risk.
Consultancy CliftonLarsonAllen points out the catch-22 some businesses are faced with. “Absorbing the costs can squeeze profit margins and limit the ability to invest in new projects or hire additional workers,” it reports. “Passing the costs on to clients can make new construction projects less attractive, potentially reducing the demand for new buildings and infrastructure.”
In March, TIAC released a statement asking members to consult on a federal government-led inquiry for input on the impact of the proposed measures. The consultation closed in April, but TIAC has provided a list of resources that members can use to alleviate some of the pressure. See the list below and feel free to reach out to Tristan Bertram, TIAC’s Director of Industry Affairs, with questions and for support.
Further Reading
Tariff Information: Consult the CBSA for tariff-related information.
cbsa-asfc.gc.ca/trade-commerce/tariff-tarif/menu-eng.html
Canada’s Response to US Tariffs on Canadian Goods: Review Canada’s official response.
canada.ca/en/department-finance/programs/international-trade-finance-policy/canadas-response-us-tariffs.html
Canada’s Notice of Intent: Read the Notice of Intent to Impose Countermeasures.
canada.ca/en/department-finance/programs/consultations/2025/notice-intent-impose-countermeasures-response-united-states-tariffs-on-canadian-goods.html
Requesting Remission of Tariffs: Learn about requesting remission of tariffs that apply on certain goods from the US.
canada.ca/en/department-finance/programs/international-trade-finance-policy/process-requesting-remission-tariffs-that-apply-on-certain-goods-us.html
Canada-US Engagement: Stay up-to-date on Canada-US relations.
international.canada.ca/en/global-affairs/campaigns/canada-us-engagement
TIAC’s Ongoing Efforts
TIAC is actively monitoring this rapidly evolving situation and will continue to inform its members of any significant changes. The Board of Directors is currently drafting plans to further engage with the Canadian government and advocate for solutions that will benefit the industry. More information regarding TIAC’s plan will be shared shortly. ▪
Disclaimer: The information contained in this article is accurate to the best of our knowledge as of the date of this email. Given the dynamic nature of this situation, details are subject to change. We encourage you to consult the official government resources provided for the most up-to-date information.
