August 31, 2026
Canadian Construction Association has released their latest member bulletin.
Canadian contractors are preparing for new cost and supply-chain pressures as Canada introduces counter-tariffs on $27.6 billion in U.S. imports, including construction materials, equipment and components.
Announced August 25, 2026, the measures respond to U.S. tariffs on Canadian goods and will take effect at 12:01 a.m. on September 8, 2026. Canada’s counter-tariffs range from 15 to 50 per cent and apply to qualifying U.S.-origin goods. Products already in transit when the measures take effect are excluded.
Construction could face significant exposure because Canada imports substantial volumes of critical building materials from the United States.
Tariffs on many U.S. steel and aluminum products will increase from 25 to 50 per cent, affecting structural steel, bridges and bridge sections, steel pipe, scaffolding, fasteners, aluminum profiles, doors, windows and other construction components.
Tariffs of up to 50 per cent also remain on lumber, plywood, laminated veneer lumber and other wood products.
According to 2024 supply-and-use data cited by the Canadian Construction Association (CCA), approximately 60 per cent of manufactured inputs used in Canadian construction are domestically sourced, while 25 per cent come from U.S. producers. U.S. exposure reaches roughly 40 per cent in some engineering construction subsectors.
The new tariffs could increase material and equipment costs, disrupt supply chains and create additional uncertainty for projects already under construction or procurement.
Affected products extend beyond steel, aluminum and lumber to include HVAC and heat pump equipment, heavy-machinery parts, lifting equipment, lighting, flooring and industrial tools.
Canada is providing tariff relief for 179 steel mill products not manufactured domestically, helping limit cost increases where Canadian alternatives are unavailable.
The federal government has announced an additional $7.5 billion support package for Canadian businesses and workers affected by U.S. tariffs.
Measures include additional funding for the Regional Tariff Response Initiative, Canada Strong Diversification Fund and worker support programs, along with expanded business financing and liquidity programs.
Eligibility and application requirements vary, with implementation details still pending for some measures.
Tariffs can affect projects differently depending on contractual terms. The Canadian Construction Documents Committee (CCDC) has previously published Bulletin 11 – Adjustments in Contract Price Due to Tariffs, outlining considerations surrounding tariff-related cost changes.
The CCA recommends contractors review existing agreements and discuss potential tariff impacts with project partners as early as possible.
The association says it will continue monitoring the effects on construction costs, supply chains, contracts and active projects while advocating for measures that protect Canada’s housing, infrastructure and trade priorities.
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