HomeAssociationsCounter-tariffs could hit construction costs, ICBA warns

Counter-tariffs could hit construction costs, ICBA warns

Ontario Construction News staff writer

Canada’s new counter-tariffs on U.S. goods could have a direct impact on construction costs, with hundreds of affected products used on job sites, according to the Independent Contractors and Businesses Association (ICBA).

The ICBA said the federal government’s retaliatory tariff list includes roughly 400 product lines that could affect the construction industry when the new measures take effect Sept. 8.

ICBA chief economist Jock Finlayson has warned that retaliatory tariffs could add to the cost pressures already facing Canadian businesses.

“Canadian retaliation will lead to higher costs for our firms and consumers, put additional strain on integrated North American supply chains, and slow overall economic growth on our side of the border,” Finlayson said in a blog post on the ICBA website.

Among the construction-related products identified by ICBA are:

Steel and aluminum

  • Hot- and cold-rolled sheet and plate
  • Galvanized and pre-painted coil
  • Rebar and wire rod
  • Angles, channels, I-beams and H-beams
  • Stainless and alloy steel products
  • Steel wire
  • Sheet piling
  • Seamless and welded pipe
  • Square and rectangular tube
  • Pipe fittings and flanges
  • Steel doors and window frames
  • Bridge sections and towers
  • Scaffolding, shoring and formwork equipment
  • Tanks and pressure vessels
  • Wire rope and slings
  • Fencing, welded mesh and expanded metal
  • Chain
  • Nails, screws, bolts, nuts, rivets, washers and anchors
  • Aluminum ingot, bar, rod and extrusions
  • Aluminum sheet, plate and foil
  • Aluminum tube, pipe and fittings
  • Aluminum wire and cable
  • Aluminum doors, windows, frames and structural parts
  • Aluminum fasteners

Wood, fixtures and electrical products

  • U.S. softwood lumber
  • Plywood
  • Laminated veneer lumber
  • Blockboard
  • Vinyl flooring and wall coverings
  • Carpet and carpet tile
  • Hinges, door hardware and exit devices
  • Stainless steel sinks, tubs and sanitary ware
  • LED, ceiling and wall light fixtures and parts
  • Radiators, unit heaters and air curtains
  • Gas, oil and wood stoves and heaters
  • Building wire and low-voltage conductors
  • Window, wall and split air conditioners
  • Heat pumps
  • Blowers and compressors
  • Refrigerators, freezers, washers, dryers and ranges
  • Metal, wood and plastic furniture

Tools and equipment

  • Power saws and other electric hand tools
  • Chainsaws
  • Staple guns and tackers
  • Other hand tools
  • Vices and clamps
  • Pipe cutters and bolt cutters
  • Tower cranes and other cranes
  • Forklifts
  • Hoists, lifts and lifting equipment
  • Hydraulic jacks
  • Freight and flatbed trailers and semi-trailers
  • Buckets, blades and other equipment parts
  • Drilling-rig parts

The new tariffs will apply only to goods that qualify as U.S.-origin products. ICBA is advising contractors to confirm the country of origin of materials and equipment with suppliers, review products already in their procurement pipeline and determine whether shipments will be in transit when the measures take effect.

The association also urged contractors to reprice affected purchases and review tariff, change-in-law and price-escalation clauses in fixed-price contracts as the trade dispute creates further uncertainty around construction costs.

While Ottawa has paired its $27.6-billion counter-tariff package with billions of dollars in support for affected workers and businesses, ICBA warned that the retaliatory measures could ultimately add to the cost of building in Canada.

Robin MacLennan, Editor, Ontario Construction News
Robin MacLennan, Editor, Ontario Construction News
Robin MacLennan has been a reporter, photographer and editor at newspapers and magazines in Barrie, Toronto and across Canada for more than three decades. She lives in North Bay. After venturing into corporate communications and promoting hospitals and healthcare, she happily returned to journalism full-time in 2020, joining Ontario Construction News as Writer and Editor. Robin can be reached at rmaclennan@ontarioconstructionnews.com
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