OTTAWA – Construction industry leaders across the country are unanimous in their condemnation of U.S. President Donald Trump’s decision to hit Canada and Mexico with 25 per cent across-the-board tariffs, with a lower 10 per cent levy on Canadian energy, which took effect today.
In addition, Trump also has ordered 25 per cent tariffs on all steel and aluminum imports into the United States on March 12, which the White House has confirmed would stack on top of the other duties imposed on Canada.
The ripple effect will be widespread, and construction companies and materials will be hard hit.
The Daily Commercial News has preliminary reaction from several associations and will be updating and monitoring this story as it develops.
RESIDENTIAL CONSTRUCTION COUNCIL OF ONTARIO
The Residential Construction Council of Ontario (RESCON) is warning the tariffs will lead to significant price hikes for building materials and substantially raise the price tag of a new home in both the U.S. and Canada.
“The residential construction industry on both sides of the border is already in dire straits due to a perfect storm of issues and this completely unwarranted and reckless act will only cause more economic hardship for builders on both sides of the border. The U.S. National Association of Home Builders shares our view that tariffs and affordability are bad on both sides of the border,” says RESCON president Richard Lyall in a statement. “Tariffs will make it more costly for building materials and, in the end, the costs of these unnecessary levies will be passed on to consumers. This will lead to a further slowdown in residential construction activity and exacerbate our already dire housing affordability crisis.”
CANADIAN CONSTRUCTION ASSOCIATION
In response to Trump’s tariffs on Canadian products, the Government of Canada has announced tariffs on an initial $30 billion worth of American goods and promised $125 billion more in 21 days. The Canadian Construction Association (CCA) commends the federal government for its continued prioritization of industry consultation.
“The Canadian and American construction industries rely heavily on free-flowing supplies of essential construction materials. These needless tariffs will decrease productivity, harm economic growth, and put critical projects and countless construction jobs at risk – on both sides of the border,” said Rodrigue Gilbert, president of the CCA. “Once again, the new U.S. administration clearly demonstrates that they have a limited understanding of how damaging these measures will be on the integrated economy between our two countries.”
CANADA’S BUILDING TRADES UNIONS
Canada’s Building Trades Unions executive director Sean Strickland was simple in his statement: “Tariffs are job killers. This unprecedented unilateral move by the Trump administration will cost jobs on both sides of the border and could be potentially devastating for Canadian construction workers.
“Our members build and maintain plants in all major sectors of the Canadian economy. We help keep the plants running smoothly during shutdowns, replace and upgrade equipment and, quite literally, keep the lights on. The Canadian government must take immediate steps to support Canadian workers by decreasing the eligibility requirements for employment insurance, extending the benefit period, removing separation monies as deemed earnings and implementing a robust job-sharing program.”
CANADIAN HOME BUILDERS’ ASSOCIATION
Canadian Home Builders’ Association CEO Kevin Lee says the U.S. tariffs on Canada will have a “muted” impact on the industry on their own. But he added an expected slowdown in the economy tied to tariff impacts could hold the national housing market back, dragging down housing starts.
“We still have a bit of a slow market despite the fact that interest rates are coming down and we would expect that’ll continue to worsen as the trade war continues, if it does,” he explained.
Lee said if these retaliatory tariffs hit critical construction materials coming from the U.S., they could drive up costs for builders.
The CHBA has asked the federal government to limit the scope of counter-tariffs to either skirt construction materials entirely or focus on products that builders can more easily source outside the U.S.
LABOURERS’ INTERNATIONAL UNION OF NORTH AMERICA – CANADIAN CHAPTER
@LIUNACanada posted on X that the Trump administration has called for an “economic trade war on their closest ally, but added Canada remains strong and steadfast in its response.
“Never underestimate the strength of our country and the men and women who power us forward, workers who will be impacted on both sides of our border. But like the bridges our members build, who pave the foundation to connect our countries, we know that together we are stronger, and nothing will divide us in our shared mission to protect our members and their families, our economy and the future of our country. LiUNA members are ready to stand up and build, defend and protect Canada.”
-With files from The Canadian Press
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