What will be the impact of Tariffs on construction in Canada? BC?

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April 03, 2025

by a searcher from Queen's University in Kelowna, BC, Canada

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Reply by a searcher
in Toronto, ON, Canada
^redacted‌ My 2 cents. The tariffs have some impact on all industries due to raw materials import getting expensive, disruptions and delays in supply chain and such factors. But I believe the direct cost impact on Canada's Construction industry will be limited in severity as key materials in Canada's construction may be locally sourced (eg Lumber) or imported from elsewhere (Steel, aluminum, electrical, plumbing, etc. from China, Taiwan###-###-#### On this front, I dont think Canada is too dependent on US unlike US which is dependent on Canadian Lumber and Steel. Labor may not be an issue either as US oriented manufacturing and other labor may get directed here.

The real concern is the indirect impact of tariffs on Canadian economy and on all industries including construction. A general tariff driven slowdown (or possibly even recession in Canada) may lead to job losses slowing Real Estate demand, fall in rental and property prices, even difficulty financing for infrastructure projects.

The fall in property prices may be counter-intuitive to the inflationary narrative around Tariffs and how higher costs with tariffs on products should lead to expensive end-product. In this case construction projects/properties. But I think that may be a real scenario here.
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Reply by a searcher
from McGill University in Toronto, ON, Canada
I asked this question to a condo developer who has a couple active projects. They suggested the cost impact from inputs will be minimal. One thing he mentioned where there's risk is appliances, but it's a small part of the pie. He suggested he's more worried about the economy, and in turn, demand.
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