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tariffs

Construction industry condemns U.S. tariffs

Donald Trump's 25% tariff will increase costs, delay projects and hurt businesses
Monday, February 3, 2025

UPDATE: The United States government has announced a 30-day pause on its originally stated Feb. 4 launch-date for 25 per cent tariffs on in-bound products from Canada and Mexico. 

Canada’s construction industry and business groups have been quick to respond and condemn the punitive tariffs imposed by U.S. President Donald Trump on Canadian goods.

Trump made tariffs a campaign promise and followed through by implementing tariffs of 25 per cent on Canadian exports and 10 per cent on oil and gas. All the tariffs are to take effect February 4, 2025, which will have significant negative impacts on the Canadian construction industry and all projects.

“These reckless tariffs are a direct attack on the hardworking businesses and tradespeople who build our communities. British Columbia’s construction industry thrives on fair trade and strong partnerships, not political posturing. BCCA stands firmly with our industry, our province, and our nation, and we will not back down in defending the jobs, businesses, and livelihoods that these tariffs put at risk,” said Chris Atchison, president, B.C. Construction Association.

For the forest industry, the tariff on all forest product exports will be devastating. The industry is already facing many challenges and has experienced mill closures and curtailments affecting thousands of jobs in the last few years. Current conditions in the sector are not only negatively impacting jobs and operations, but also government revenue, and investment in the province.

The U.S. government’s decision to impose a 25 per cent tariff on all exports including Canadian forest products threatens the competitiveness of B.C.’s forestry sector, jobs in local communities, and the affordability of essential goods for Americans.

“Forestry is a cornerstone of British Columbia’s economy, providing tens of thousands of family-supporting jobs in every region of the province. B.C.’s highly integrated forest industry delivers essential products like lumber and building materials for housing, pulp and paper, and bioenergy for heating and transportation,” said Kim Haakstad, B.C. Council of Forest Industries (COFI) president and CEO. “This tariff on all forest product exports will be devastating, potentially leading to further job losses hurting the workers and communities across the province that depend on forestry.”

The B.C. Lumber Trade Council shared similar sentiments, stressing the tariff decision will impact American families as well. American demand exceeds domestic supply and requires U.S. builders to import about 30 per cent of their lumber needs. The tariffs will disrupt the essential supply chain, increasing building material costs, at a time when affordability continues to be a major concern.

“The U.S. government’s decision to impose a 25 per cent tariff on softwood lumber and other Canadian exports is a punitive, unjustified protectionist measure that will cause economic harm in both Canada and the United States,” said Kurt Niquidet, president of the B.C. Lumber Trade Council.

Steel trade is another area that will see significant disruption and economic hardship in both countries due to the tariffs. The North American steel industry is highly integrated across the Canadian and US border with $20 billion in annual steel trade.

“In response to these new tariffs, the CSPA welcomes the Government of Canada’s decisive action through retaliation as well as through supportive approaches to help Canada’s industries. We will engage with the Government of Canada and the provinces to find support for our workers to weather this unfortunate and unnecessary challenge over the days to come,” said Catherine Cobden, president and CEO of the Canadian Steel Producers Association (CSPA).

The first phase of the Canada’s countermeasures is tariffs on $30 billion in goods imported from the U.S., effective February 4, 2025. The list includes a range of building materials along with many consumer products such as orange juice, peanut butter, wine, spirits, beer, coffee, appliances, apparel, footwear, motorcycles and cosmetics.

U.S. Chamber of Commerce senior vice president John Murphy called Trump’s tariffs unprecedented, citing they will upend supply chains and will only raise prices for American families.

“President Trump’s profoundly disturbing decision to impose tariffs will have immediate and direct consequences on Canadian and American livelihoods. Tariffs will drastically increase the cost of everything for everyone: every day these tariffs are in place hurts families, communities, and businesses,” said Candace Laing, president and CEO, Canadian Chamber of Commerce.

 

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