Update: The United States government has issued a temporary pause on tariffs until April 2, if incoming Canadian goods are deemed “compliant” with the Canada-U.S.-Mexico Agreement (CUSMA) on Trade. Canada will not enact a second round of proposed tariffs as long as the U.S. continues to honour this pledge.

Procurement complications have arisen throughout Canada as businesses grapple with a long list of products from the United States now to be subject to a 25 per cent import tax. For the buildings sector, that brings supply chain challenges and added costs for construction, property/facilities management and operations with new surcharges attached to a broad range of structural materials, equipment, furnishings and products purchased from the U.S.

The U.S. government provoked this new cost regime yesterday after it discarded the North American free trade agreement and imposed the sweeping tariffs on Canadian imports that it had been threatening for the past several weeks. The first round of Canada’s retaliatory tariffs, unveiled in early February, are now in force. A subsequent roster of designated products, estimated at roughly $125 billion worth of trade, has been posted for advance consultation before potentially taking effect later in March.

“The United States has chosen to pursue a harmful course of action that threatens the prosperity of both our nations,” asserts Canada’s Minister of Foreign Affairs, Mélanie Joly. “Canada stands firm in defending our economy, workers and businesses against these unjustified tariffs.”

The new expanded list of Canadian countermeasures proposes tariffs on:

• key metals such as steel, iron, aluminum, copper, nickel, tin, titanium and zinc;
• stone such as granite, marble, travertine and sandstone;
• cement and concrete;
• gypsum and plasters;
• glass, ceramics and brick;
• rubber;
• plastics; and
• minerals and chemical formulations, such as polyvinyl chlorides, that are elements of various building products.

That’s to be compounded with tariffs on common building components fashioned from some of these materials, including windows, doors, sinks and radiators. Scaffolding, cable, hinges, castors, pipes, tubes, hoses, reservoirs, tanks, saw blades, mountings and fittings are likewise on the list.

Equipment and systems for air conditioning, electric space heating and water heating are on the list, as are refrigerators and clothes dryers. Already a big expenditure, escalators from U.S. sources would cost 25 per cent more when the second phase of counter-tariffs takes effect.

Other proposed tariffs target life safety systems and general operational functions and safeguards, including: smoke, fire and carbon monoxide detectors and associated alarms; electric relays and switches; and fuses, circuit breakers, surge suppressors and voltage limiters.

On the energy front, electricity imported from the U.S. is tapped to be taxed. So, too, are various wood-based fuels including wood chips, pellets and briquettes. A range of cells and batteries are also on the list. Meanwhile, related to energy consumption, illuminated signage would be subject to the tariff.

The initial round of tariffs, applying to an estimated $30 billion worth of trade, hit U.S. imports of engineered structural timber products used in mass timber construction. The second round goes further to include imported prefabricated buildings and modular construction components made from both wood and steel. As well, tariffs would apply on air-supported, or bubble buildings, that often house recreational facilities.

Many hand tools were captured in the first phase of tariffs, but that’s now further expanded to include spades, shovels, picks, hoes, rakes, pitch forks, hedge/pruning shears and post hole diggers. Round two of Canada’s retaliatory tariffs would also add in a few furnishing and decor items that were left out previously, including textile wall coverings, linoleum floor covering, wood window blinds and shades, plastic and rubber mats, and matting made from vegetable products such as bamboo or rattan.

Related to building maintenance and housekeeping, the second round of tariffs includes mops and mechanical floor sweepers, metal and wood polishes and various scouring pastes and powders. Looking to the outdoors, a range of flower bulbs and flowering and leafy plants are on the list, including favourites like daffodils, daisies, sunflowers, chrysanthemums, peonies, roses, rhododendrons, azaleas and fruit- and nut-bearing trees, shrubs and bushes. Tariffs would also be applied on patio umbrellas, fish for ornamental ponds and bees imported from the U.S..

The public has an opportunity to comment on this round of proposed tariffs until March 25, 2025. There will also be an avenue for importers to request exemptions or relief from the tariffs in certain circumstances. As with the first round of tariffs, new surcharges would not apply on products that were purchased but had not yet crossed the border on the day the tariffs go into effect.

“Working with provincial, territorial and industry partners, our singular focus is to get these tariffs removed as quickly as possible,” pledges Canada’s Finance Minister, Dominic LeBlanc. “The U.S.’s decision leaves us with no choice but to respond to protect Canadian interests, workers and businesses.”