Looming tariff threat creating chaos and uncertainty
Contractors need to start conversations early and scrutinize contracts
As the U.S. trade tariff dispute looms, construction businesses face uncertainty and potentially significant financial risks.
Since assuming office, U.S. President Trump has signed a rash of executive orders, imposing a punitive 25 per cent tariff on all Canadian imports, including steel and aluminum, and a 10 per cent tariff on energy products. Canada is responding with retaliatory measures.
While there’s a 30-day pause between the countries, the potential impacts are too significant to ignore.
The tariffs threaten to disrupt established supply chains, increase project and material costs and put more strain on an industry already facing tough market conditions.
The tariff uncertainty is creating “chaos,” stated Louis-Philippe Champagne, associate vice president, Canadian Construction Association during an industry webinar.
He said the tariffs will have two very significant indirect impacts on construction. First is the economic contraction and damage on both Canada and the U.S., leading most likely to a recession if the tariffs are sustained for several months. It will also mean less investment into projects due to owner concerns over risks. …[Continue Reading]