Steel, aluminium, lumber and cement are all being hit with damaging new 50 per cent tariffs with the collapse of trade talks between the US and Canada. The new sweeping tariffs are on top of existing US tariffs, which will drive construction costs and risks further up and create more disruptions in deeply integrated U.S.-Canadian supply chains.
Trump’s tariffs will impact value-added and processed wood items, including engineered wood panels, plywood, laminated veneer lumber (LVL), particle board, and medium-density fiberboard (MDF). Finishing materials like Canadian drywall and hardwood moldings are also subject to the new 50 per cent baseline tariff.
B.C.’s forestry industry expects it will be one of the hardest-hit sectors by the new tariffs and is bracing for severe economic damage. Goods impacted account for more than 13 per cent of the province’s total exports to the United States, with wood and paper among the most affected categories.
The National Association of Home Builders, headquartered in Washington, D.C., has warned that tariffs will only make building materials and equipment more expensive and worsen affordability challenges.
Following the U.S. decision to impose the new tariff on $27.6 billion of Canadian goods effective August 22, Minister Champagne confirmed that Canada will match the new U.S. tariffs dollar for dollar, rate for rate, with additional Canadian tariffs on U.S. goods. The Canadian levies, ranging from 15 per cent to 50 per cent, are effective on September 8, 2026.
Canada’s counter tariffs will apply to imports from the U.S. and will focus on sectors such as steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics, that are most impacted by U.S. tariffs. The list of products is designed to match Canadian goods hit by the US.
“We support and applaud the federal government’s swift action in introducing support measures for affected businesses and workers. These measures are a meaningful and welcome first step that recognizes the significant challenges many companies are facing,” said Greater Vancouver Board of Trade’s president and CEO, Bridgitte Anderson.
