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Governments and representatives from Canada’s construction and infrastructure industry have been quick to respond and condemn the unjustified and unreasonable tariffs imposed by U.S. President Donald Trump on Canadian goods. The first phase of the federal government’s response is tariffs on $30 billion in goods imported from the U.S., effective February 4, 2025, when the U.S tariffs are applied. The list includes products such as orange juice, peanut butter, wine, spirits, beer, coffee, appliances, apparel, footwear, motorcycles, cosmetics, and pulp and paper. Minister of Finance Dominic LeBlanc also announced that the government intends to impose tariffs on an additional list of imported U.S. goods worth $125 billion. A full list of these goods will be made available for a 21-day public comment period prior to implementation, and will include products such as passenger vehicles and trucks, including electric vehicles, steel and aluminum products, certain fruits and vegetables, aerospace products, beef, pork, dairy, trucks and buses, recreational vehicles, and recreational boats. “This first set of countermeasures is about protecting—and supporting—Canada’s interests, workers, and industries. These U.S. tariffs are plainly unjustified. They are detrimental to both American and Canadian families and businesses. Working with provincial, territorial and industry partners, our singular focus is to get them removed as quickly as possible. Until then, our response will be balanced and resolute,” said LeBlanc. Ontario Premier Doug Ford was quick to respond to the tariffs by banning American companies from provincial contracts. “Starting today and until U.S. tariffs are removed, Ontario is banning American companies from provincial contracts. Every year, the Ontario government and its agencies spend $30 billion on procurement, alongside our $200 billion plan to build Ontario. U.S.-based businesses will now lose out on tens of billions of dollars in new revenues. They only have President Trump to blame. We’re going one step further. We’ll be ripping up the province’s contract with Starlink. Ontario won’t do business with people hellbent on destroying our economy,” said Ford in a posted Feb. 3 on X (formerly Twitter). The Residential Construction Council of Ontario (RESCON) says the Trump administration’s decision to impose tariffs on Canadian products as the move is unjustified and will have a detrimental effect on the homebuilding industry on both sides of the border. “Ontario’s residential construction industry, like many others across the country, are bracing for the impact of the tariffs,” says RESCON president Richard Lyall. “The residential construction industry is already challenged. The move is reckless and will cause economic hardship in both the U.S. and Canada, affecting tens of billions of dollars of trade in construction materials alone. Such levies will only increase costs and lead to a further slowdown in residential construction activity which will exacerbate an already dire housing affordability crisis.” The present situation is a much more significant event than the tariffs that were imposed by the previous Trump administration in March 2018 on certain imports of steel and aluminum from Canada. Canada responded by imposing countermeasures against $16.6 billion of steel aluminum and other products from the U.S. Both countries lifted their tariffs in May 2019. “No one will benefit from an arbitrary increase in material and product prices. Our countries and supply chains are intertwined and dependent on each other, so nobody wins in a tariff war,” says Lyall. “Homebuilding industries on both sides of the border will be negatively affected. Our industry relies heavily on imported materials from the U.S. A tariff war only makes imports more expensive and will add to the cost of building a home. Likewise, Americans will suffer as U.S. homebuilders rely on Canada to fully meet their lumber needs.” The Federation of Canadian Municipalities called for coordinated Canada-U.S. response to tariffs. “Municipalities are the backbone of the Canadian economy and the engine that drives growth, productivity and jobs,” said FCM President Rebecca Bligh. “Tariffs put local businesses, workers, and supply chains at risk. Any response to the actions of the U.S. administration must be coordinated across all orders of government, as municipalities play a crucial role on Team Canada. The BC Construction Association also strongly condemned the tariffs, saying these measures threaten the livelihoods of businesses and workers across the province and the country, undermining the economic partnerships that drive growth and stability in construction sector. “These reckless tariffs are a direct attack on the hardworking businesses and tradespeople who build our communities. British Columbia’s construction industry thrives on fair trade and strong partnerships, not political posturing. BCCA stands firmly with our industry, our province, and our nation, and we will not back down in defending the jobs, businesses, and livelihoods that these tariffs put at risk.” said Chris Atchison, president, BC Construction Association. |
