New York Construction Report staff writer
Canada is raising tariffs on U.S. steel and aluminum to 50 per cent as the latest escalation in the Canada-U.S. trade dispute threatens to add more uncertainty and costs for Ontario’s construction industry.
The federal government announced Tuesday that the higher tariffs will take effect Sept. 8 as part of a package covering more than $27.6 billion worth of U.S. imports. The measures are intended to match the latest U.S. tariffs dollar for dollar.
For construction, steel and aluminum are among the most significant products affected. Canada’s existing 25 per cent counter-tariffs on those materials will rise to 50 per cent.
The broader list includes machinery, agricultural equipment, hand tools, appliances, plastics, pulp and paper and electronics — products that can also be used by construction companies and other businesses.
The federal government is also putting $2 billion toward shovel-ready projects as part of its response to the trade dispute.
For Ontario contractors, the higher tariffs could mean additional pressure on material and equipment costs, particularly for businesses that rely on U.S. suppliers. They could also complicate supply chains as contractors and distributors look for alternative sources.
The Canadian measures follow the breakdown of trade negotiations between Ottawa and Washington and new U.S. tariffs on Canadian products.
New York Gov. Kathy Hochul addressed the dispute Thursday, warning that the U.S. tariffs are also increasing costs for businesses and consumers in her state.
“I do want to take a moment to address the disastrous impacts of federal tariffs on millions of everyday New Yorkers and how New Yorkers in our state and elsewhere are being slammed by them,” Hochul said.
Hochul criticized the Trump administration’s tariff policy and said the threat of 50 per cent tariffs on Canadian cars, trucks, auto parts and steel would further damage the U.S. economy.
“This is doing nothing more than wreaking havoc on the American economy,” she said.
Hochul also argued that American consumers, rather than the federal government, are ultimately bearing much of the cost.
“Who’s paying the price for these tariffs? It’s not Donald Trump,” she said. “Donald Trump made $2.2 billion since he became president.”
Hochul said New Yorkers are estimated to be facing about $1,700 per family in costs from the tariffs imposed by the Trump administration.
The governor’s comments come as the trade dispute increasingly affects industries and supply chains on both sides of the border. New York and Ontario have particularly close economic ties, with businesses in both jurisdictions relying on cross-border trade.
Canadian officials have said the new counter-tariffs are designed to put pressure on the United States while limiting the damage to Canadian businesses. Ottawa is also providing support to companies affected by the trade measures and helping businesses find alternatives to tariffed U.S. products.
The latest escalation comes as contractors and suppliers continue to deal with uncertainty over the price and availability of construction materials.
With the new Canadian tariffs scheduled to take effect Sept. 8, the construction industry will be watching closely to see whether suppliers pass the additional costs on to contractors and how quickly alternative sources of steel, aluminum and equipment can be found.
