Retaliatory tariffs loom for buildings sector
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. The Canadian government will not implement any new tariffs unless the U.S. acts first.
Canada’s initial round of retaliatory tariffs on products imported from the United States would impose a 25 per cent surcharge on a range of building materials and furnishings, and equipment and products used in building operations, maintenance and housekeeping. The total package of proposed tariffs, which covers a much more expansive menu of imports, is valued at roughly CAD $30 billion worth of trade and is set to take effect Feb. 4, if the U.S. proceeds with its threatened 25 per cent tariff on Canadian imports on that day.
If it’s necessary, a second stage of Canada’s response will introduce a pricier list of big-ticket items, valued at CAD $125 billion worth of trade. These proposed tariffs are to be announced in the near future and opened for a 21-day public consultation.
“This first set of countermeasures is about protecting — and supporting — Canada’s interests, workers, and industries,” says Finance Minister Dominic LeBlanc. “In the face of the unjustified U.S. tariffs against Canadian goods, we are taking action to protect our economy, our workers and our businesses.”
Phase-one tariffs will not be levied on products that are in transit from U.S. locales but have not yet arrived at Canadian destinations on the day that the measures come into effect. In addition, there will be a mechanism to allow Canadian importers to apply for exemptions due to special circumstances.
Wood construction products figure prominently in the list of retaliatory tariffs. This includes: posts and beams; lengths of lumber; plywood; fibre board; shingles and shakes; wood flooring; and engineered structural timber products. The latter covers off key components of mass timber construction, such as cross-laminated timber (CLT or X-lam), glue-laminated timber (glulam) and I-beams. There are also spinoff repercussions for concrete construction with a new tariff on imported wood forms for poured concrete.
Retaliatory tariffs on a broad range of hand tools, including saws, drills, wrenches and screwdrivers, will have implications for construction, building operations and maintenance. As well, tariffs will apply on work boots, safety belts and safety head gear purchased from the U.S..
On the building furnishings front, some of the U.S. imports to be targeted include:
- light fixtures;
- windows and doors;
- locks and padlocks;
- awnings and blinds;
- carpets;
- wall coverings;
- metal and wood office furniture; and,
- hat racks, hat pegs and brackets.
Washrooms are particularly in line for potential new costs, with retaliatory tariffs to be imposed on: sinks; toilets; urinals; wall-mounted hand dryers; liquid soap and other organic products for hand cleaning; toilet paper; and room deodorizers.
Related to grounds-keeping, phase-one retaliatory tariffs will apply on U.S. imports of snow ploughs, snow blowers and mowers, as well as automatic bird-scaring devices.
“Canada will not stand by as the U.S., our closest and most important trading partner, applies harmful and unjustified tariffs against us,” asserts Canada’s Minister of Foreign Affairs, Mélanie Joly. “With these countermeasures, we are defending Canada’s interests and are doing what is best for Canadians and our economy.”