New Tariffs Certain To Tax The Construction Industry

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Key Takeaway

With the imposition of tit-for-tat tariffs by the American and Canadian governments, construction industry participants should consider how their current contracts deal with these unanticipated cost increases and what steps they might take to address the imposition or removal of tariffs in future contracts.

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Overview

Effective March 4, 2025, the American Government has imposed a 25% tariff on nearly all Canadian products exported to the United States (the "American Tariffs"). The Canadian Government subsequently announced 25% retaliatory tariffs to be imposed on certain goods coming into Canada from the United States effective March 5, 2025 (the "Retaliatory Tariffs"). The Retaliatory Tariffs arise out of the Customs Tariff statute that allows the Canadian government to impose tariffs in response to another countries' imposition of tariffs that negatively affect the trade of Canadian