Risks Of Tariffs And Their Impact On Construction Projects: What You Need To Know

Canadian news has recently been dominated by the possible imposition by the United States of substantial tariffs on Canadian goods. While recent developments have resulted in a 30-day reprieve from their imposition, tariffs remain top of mind. Perhaps nowhere is this more true than the construction industry, where numerous critical materials and components are both imported from and exported to the United States.

As a result, parties are now considering how tariffs may impact their projects and their overall businesses. Below, we review how parties can make efforts to prepare for and address the impact of tariffs.

Background

Over the past few weeks, U.S. officials – including, most prominently, President Trump – have signaled an intention to impose a 25% tariff on Canadian imports (with the possible exception of a 10% tariff on energy); including, most notably from a construction perspective, materials such as steel, aluminum, and lumber. In response, the