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    • What does the Canada-U.S. tariff war mean for your business?

    Canada–U.S. Tariff Info Hub

    Last reviewed: 23 July 2026

    What does the Canada–U.S. trade dispute mean for your business? This hub gives Saskatchewan contractors a current, plain-language view of the tariffs in force and coming into effect, where the CUSMA negotiation stands, and practical steps to protect your contracts — each linked to its primary source so you can verify the detail yourself.

    Tariff Tracker

    The measures shaping construction costs and supply right now, grouped by status.

    Live tariff status
    Scheduled — effective date set In force Recently retired
    Scheduled — new U.S. Section 338 tariffs (effective 19 Aug 2026)
    Effective 19 Aug 2026
    U.S. → Canada
    Section 338 duty on selected goods (motor vehicles proclamation)
    Additional 50% duty on the Canadian goods listed in the proclamation’s Annex II. Signed 20 Jul 2026. Per the proclamation, the duty applies to covered goods whether or not they are CUSMA-compliant, and does not apply to energy, potash, Section 232 goods, fish, or critical minerals.

    White House proclamation (motor vehicles)

    50%

    19 Aug

    Effective 19 Aug 2026
    U.S. → Canada
    Section 338 duty on selected goods (alcoholic beverages proclamation)
    Additional 50% duty on the Canadian goods listed in Annex II. Signed 20 Jul 2026. Applies to covered goods regardless of CUSMA origin; same stated carve-outs.

    White House proclamation (alcoholic beverages)

    50%

    19 Aug

    Effective 19 Aug 2026
    U.S. → Canada
    Section 338 duty on selected goods (dairy proclamation)
    Additional 50% duty on the Canadian goods listed in Annex II. Signed 20 Jul 2026. Applies to covered goods regardless of CUSMA origin; same stated carve-outs.

    White House proclamation (dairy)

    50%

    19 Aug

    In force — U.S. sector tariffs (construction materials)
    4 Jun 2025
    U.S. → Canada / global
    Steel & aluminum (Section 232)
    50% Section 232 tariff. The 20 Jul 2026 aluminum proclamation did not change this rate; it added a program allowing companies that build new U.S. primary-aluminum capacity to import a corresponding quantity at half the Section 232 rate. Applies to steel, rebar, and aluminum articles and derivatives whether or not they are CUSMA-compliant.

    White House proclamation (aluminum, 20 Jul 2026)

    50%

    In force

    1 Aug 2025
    U.S. → global
    Semi-finished copper products (Section 232)
    50% Section 232 tariff on semi-finished copper products. Named in the 20 Jul 2026 fact sheet among standing Section 232 actions. Affects copper wiring, plumbing, and mechanical/electrical components.

    White House fact sheet

    50%

    In force

    2025
    U.S. → Canada
    Softwood lumber & timber (Section 232 / AD-CVD)
    Lumber and timber are named in the 20 Jul 2026 fact sheet among standing Section 232 actions, alongside separate antidumping/countervailing duties on Canadian softwood lumber. Affects framing lumber and wood products. Confirm the current combined rate against the U.S. Commerce Department or Federal Register before citing a figure.

    White House fact sheet

    Duties apply

    In force

    In force — auto-sector tariffs (both directions)
    Mar/Apr 2025
    U.S. → Canada
    Automobiles & auto parts
    25% tariff on automobiles and auto parts. Cited in the 20 Jul 2026 fact sheet and the PMO statement as a central element of the dispute.

    White House fact sheet

    25%

    In force

    Since 9 Apr 2025
    Canada → U.S.
    Surtax on U.S. motor vehicles (Canada)
    Per the PMO statement and Canada’s United States Surtax Order (Motor Vehicles 2025), SOR/2025-118: a 25% surtax on non-CUSMA-qualifying U.S. vehicles, a 25% rate on non-North-American content in qualifying vehicles, and tariff-rate quotas. Canada characterizes these as matching U.S. auto measures.

    Prime Minister’s Office statement

    25%

    In force

    ▸  Recently retired measures (for reference)
    Jun 2025
    SK / AB → U.S.
    Saskatchewan & Alberta lifted U.S. alcohol restrictions
    Per the alcoholic-beverages proclamation, Alberta and Saskatchewan were the two jurisdictions that lifted their restrictions on the purchase, distribution, or retail of U.S. alcoholic beverages (June 2025).

    White House proclamation (alcoholic beverages)

    —

    Retired

    Mar 2025
    Canada (provinces) → U.S.
    Provincial U.S. alcohol restrictions
    Per the same proclamation, from March 2025 provinces including Ontario (LCBO) and Quebec (SAQ) removed U.S. alcohol from sale. Lifted in SK/AB per the June 2025 entry above; the proclamation states restrictions continued elsewhere.

    White House proclamation (alcoholic beverages)

    —

    Retired

    Primary sources: White House fact sheet (20 Jul 2026); White House proclamations on motor vehicles, alcoholic beverages, dairy, aluminum; and the Prime Minister’s Office statement.

    For general information only; not legal or trade advice. The goods covered by each Section 338 duty are listed in that proclamation’s Annex II. Rates and effective dates can change; verify against the linked primary source before making procurement or contract decisions.

    Where CUSMA stands

    The negotiation, at a glance

    The agreement governing most North American trade, currently in dispute and under review.
    U.S. position
    The 20 Jul 2026 fact sheet states the U.S. "did not agree to renew USMCA in its current form" and describes the new duties as offsetting Canadian trade practices.
    Canada’s position
    The PMO statement describes the U.S. tariffs as CUSMA violations, states Canada has "merely matched" the auto measures, and says Canada is ready to "intensify those discussions in the coming weeks."
    Newest development
    On 20 Jul 2026 the U.S. signed three Section 338 proclamations (dairy, alcohol, motor vehicles) adding 50% duties on selected Canadian goods, effective 19 Aug 2026.
    Key date to watch
    19 Aug 2026 — the date the Section 338 duties take effect per the proclamations.

    Relevance to construction: the Section 232 tariffs (steel, aluminum, copper, lumber) apply on national-security grounds independent of CUSMA status. Per their text, the new Section 338 duties also apply to covered goods "regardless of whether a good originates under USMCA." The 20 Jul 2026 fact sheet lists covered products ranging "from wine to hockey sticks to cement." The specific goods are set out in each proclamation’s Annex II.

    Protect your business

    Practical steps from the Canadian Construction Association (CCA) to manage tariff cost risk in your contracts.

    Existing contracts

    Check for duty provisions. See whether your contract allows price adjustments for changes in taxes and customs duties — e.g. GC 10.1 in CCDC 2 or CCA 1. Review supplementary conditions too.
    No provision? Without duty clauses, contractors may be liable for the increased costs.
    Owners: CCA encourages fairly considering price-adjustment requests when contractors face unforeseen tariff-driven cost increases.

    New contracts

    Raise it early. If a potential project lacks duty provisions — especially with known upcoming duty changes — formally flag it to the owner.
    Include duty provisions. Encourage the owner to address duty uncertainty in the bid documents; GC 10.1 of CCDC 2 offers standard wording.

    Cost recovery

    Unforeseen duty costs. You may have a case to recover added costs — though it is harder without clear contract provisions.
    Delay-driven escalation. If changes, delays, or suspensions push material purchases into higher-cost periods, recovery may be possible depending on the contract.
    Read your contract. The single most important step is understanding your contract terms. For the full guidance and CCA’s five-part "Read your construction contract" webinar series, see CCA: Preparing your business for potential tariffs.

    Key resources

    Evergreen tools and official guidance — kept short and current, not a news archive.

    Seeing tariff impacts on your projects?

    The situation is evolving quickly. If you are encountering tariff-related cost changes, contract clauses, or supply issues, share the details — your input helps CASK advocate and keep this hub accurate. Email webuildsk@constructionsk.ca with questions about how these measures affect your business.

    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.

    For any questions/suggestions contact:

    Kamel Shazad

    Kamel Shazad

    Director of Public Affairs and Communications

    (306) 791-7422
    Ryan Fredrickson

    Ryan Fredrickson

    Director of Operations

    (306) 653-1771

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