Background

On Saturday, February 1, 2025, President Trump signed an executive order imposing 25% tariff on imported goods from Canada, Mexico and China. In response, the Government of Canada swiftly announced countermeasures, introducing targeted tariffs on American goods to protect Canadian industries and workers. As of February 5, proposed tariffs will be paused for 30 days.

While this temporary break brings great relief, Canadians must be proactive to mitigate the impacts of these shifting dynamics. This is an opportunity to break down barriers to interprovincial trade and diversify our global trade.

Do you know how your business will be impacted?  

The proposed tariffs and countermeasures will have a significant impact on the Canadian economy and the construction industry. Potential material cost increases, driven by currency fluctuations and tariff threats pose significant risks. The construction industry’s success will hinge on its ability to adapt to shifting trade dynamics amid upcoming challenges.

Remission of tariffs that apply on certain goods from the U.S. **New**

Process for requesting remission of tariffs that apply on certain goods from the U.S. – Canada.ca

Timeline and Updates

Prime Minister Carney speaks with President of the United States Donald J. Trump | Prime Minister of Canada (March 28, 2025)

‘Prepare for the worst,’ Carney says on plans as new Trump tariffs near – National | Globalnews.ca (March 25, 2025)

Trump tariffs: Some sectors could be spared from next round, White House says (March 25, 2025)

Mark Carney triggers federal election for Canada (March 23, 2025)

Bank of Canada unveils new playbook as Trump’s tariff threats create mayhem (March 20, 2025)

Canada hits the U.S. with tariffs on $29.8B worth of goods after Trump slaps levy on metals | CBC News (March 12, 2025)

Trump doubles planned tariffs on Canadian steel and aluminum to 50% as trade war intensifies | AP News (March 11, 2025)

Any future government capital projects have been paused and for those projects in process, contractors will be asked to report on American products and reduce that amount. (March 5, 2025)

Canada’s retaliatory tariffs on US goods to start Tuesday: Trudeau (March 3, 2025)

Fact Sheet: President Donald J. Trump Proceeds with Tariffs on Imports from Canada and Mexico – ] (March 3, 2025)

Fact Sheet: President Donald J. Trump Restores Section 232 Tariffs – The White House (Feb 11, 2025)

Premier Moe Travels to Washington and Mexico to Support Canada U.S. Trade | News and Media | Government of Saskatchewan (Feb 7, 2025)

Fact Sheet: President Donald J. Trump Imposes Tariffs on Imports from Canada, Mexico and China (Feb 1, 2025)

Canada announces $155B tariff package in response to unjustified U.S. tariffs (Feb 1, 2025)

Protect Your Business

For existing contracts: What you should know

• Review your contract: Check if your contract includes provisions for price adjustments due to changes in taxes and customs duties, such as paragraph 10.1 in CCDC 2—Stipulated Price Contract or CCA 1—Stipulated Price Subcontract. Remember to review the supplementary conditions even with standard CCDC and CCA contract forms.
• Contracts without duty provisions: If no duty provisions are included, contractors may be liable for covering the increased costs.

CCA encourages owners to fairly consider requests for price adjustments if contractors are facing unforeseen cost increases due to tariffs.

For new contracts: How to address tariff uncertainty

• Raise the issue early: If the contract for a potential project lacks duty provisions, especially if you’re aware of upcoming changes to taxes or customs duties, formally bring this to the owner’s attention.
• Include duty provisions: Encourage the owner to include duty provisions or address this uncertainty in the bid documents. Look to GC 10.1 of CCDC 2 for standard, industry-accepted wording.

Other considerations: Key points to remember

• Argue for cost recovery: If you’re facing unforeseen costs due to increases in taxes and customs duties, you may have a case for recovering additional costs. However, without clear duty provisions in the contract, this may be challenging.
• Cost recovery due to delays: If a project experiences changes, delays, or suspensions that postpone material purchases and result in escalated costs, contractors might be able to recover these additional expenses, depending on the contract and situation.

Final tip: Always read your contract

The most important piece of advice is to carefully read and understand your contracts. To help you with this, check out CCA’s five-part “Read your construction contract” webinar series.

Staying informed and prepared will help your business navigate potential tariff changes with confidence.

The current situation surrounding tariffs is evolving quickly, bringing a great deal of uncertainty to our industry. To help us better understand how this is impacting you, we’re asking members to share any tariff-related information, clauses, or updates you’re encountering in your projects or communications.

Your input is vital as we work to provide clarity and support during this unpredictable time. Please send any details to webuildsk@constructionsk.ca.

CASK in the News:

1. 1. Sask. industries prepare for pain of U.S. steel, aluminum tariffs | CBC News
   2. With a trade war brewing, how can businesses in Saskatoon prepare? | Saskatoon Morning | On Demand | CBC Listen
   3. Canada’s construction industry congratulates Prime Minister Carney and his cabinet – Canadian Construction Association

Additional Resources

Visit the Canada-US trade tracker, a new tool designed to illustrate the ties between our two economies (Courtesy: Canadian Chamber of Commerce)

List of products from the United States subject to 25 per cent tariffs effective March 4, 2025 – Canada.ca

Canada.ca – Business Benefits Finder

Recognizing the importance of these announcements CASK in collaboration with CCA, is diligently working to thoroughly evaluate how these tariffs will be implemented and their potential impact on Saskatchewan’s construction industry.

We are committed to keeping you informed and will continue to provide updates as the situation develops. In the meantime, we are here to support you, please feel free to reach out with any questions or concerns regarding the effects of these tariffs and countermeasures.

Last Updated On: March 28, 2025