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March 5, 2025

U.S. Tariff Update #1

The Government of Canada has announced a 25% tariff on a range of American goods in response to recent U.S. trade measures. These countermeasures, effective March 4, 2025, will significantly impact construction materials and equipment imported from the United States. This a first step by the Federal Government with and further tariffs planned on an additional $125 billion in goods.
 
Click here for a full list of American goods subject to Canadian tariffs.
 
Key Construction-Related Items Subject to Canadia Import Tariffs

  • HS Code 4408 – Veneer sheets and wood sheets for plywood or other wood products
  • HS Code 4418 – Builders’ joinery and carpentry of wood (doors, windows, and their frames)
  • HS Code 8418 – Refrigerators, freezers, and heat pumps
  • HS Code 8516 – Electrical water heaters and space heaters
  • HS Code 8205 – Hand tools, including hammers, screwdrivers, and wrenches
  • HS Code 8302 – Metal fittings for buildings (hinges, locks, brackets, and other mountings)

 
What This Means for Your Business:

  1. Increased Costs: Expect higher prices for U.S.-sourced materials.
  2. Supply Chain Disruptions: Delays in availability of key construction inputs.
  3. Alternative Sourcing Needed: Canadian and other international suppliers may become more viable.

The Winnipeg Construction Association (WCA) is closely monitoring developments and engaging with stakeholders to assess the impact on Manitoba’s construction industry. We encourage members to review procurement strategies and explore domestic sourcing options.

Government of Canada Next Steps
The Federal Government intends to impose additional countermeasures on an additional $125Bn on imports from U.S. Click here for the list of proposed goods, which includes steel, aluminum and construction vehicles and machinery.

Government of Manitoba planned steps
Manitoba premier Wab Kinew has signaled the provincial government will be rolling out measures to both counter American tariffs and assist Manitoba businesses affected by them.

This is a quickly evolving policy situation and we will keep WCA members informed. Watch this space as well as our LinkedIn page for relevant information as it becomes available.