Ontario Construction News staff writer
Canada is doubling its tariffs on American steel and aluminum to 50 per cent, a move that could further raise costs and complicate supply chains for Ontario’s construction industry as the trade dispute between Ottawa and Washington escalates.
The federal government announced Tuesday that starting Sept. 8 about $27.6 billion in new counter-tariffs will hit more than 700 U.S. products, matching the value of the latest American duties imposed by U.S. President Donald Trump.
For the construction sector, the most significant changes are the increase in existing Canadian tariffs on U.S. steel and aluminum from 25 per cent to 50 per cent and a $2-billion fund will spur shovel-ready projects.
The broader package also includes tariffs of 15, 25 and 50 per cent on a range of American imports, including hand tools, machinery and other products used by businesses and consumers.
Federal officials said the measures are intended to respond “dollar for dollar” to the latest round of U.S. tariffs, which target Canadian products in sectors including steel, aluminum, autos and lumber.
The value of the American goods targeted by Canada represents about 7.3 per cent of total U.S. imports into Canada, based on 2024 data. That is a larger share than the approximately five per cent of Canadian exports affected by the latest U.S. tariffs, officials said.
The latest escalation follows the collapse of trade negotiations that appeared close to producing an agreement last week. Prime Minister Mark Carney has said the U.S. demands would have infringed on Canada’s ability to make its own trade agreements and establish protections for the French language.
For Ontario contractors and other construction businesses, the new tariffs could add further uncertainty to an industry already navigating higher material costs and concerns over the availability of steel and other imported products.
Federal officials said the government will attempt to minimize the impact of its retaliatory measures on Canadian businesses through programs designed to offset some of the costs of counter-tariffs and help companies find alternatives to tariffed U.S. goods.
The government also announced $7.5 billion in additional support for workers and businesses affected by the trade dispute, including $1.5 billion through regional development agencies to assist small- and medium-sized businesses, as well as $500 million in loans through a federal Crown corporation.
The government is also extending the maximum term of an existing loan program for large companies from 10 years to 15 years and $3.5 billion will be directed toward Employment Insurance measures, including eliminating the one-week waiting period, extending the duration of benefits and allowing workers to access EI before exhausting severance payments.
