Canadian and U.S. trade associations react to tariff threats

On February 1, U.S. President Donald Trump signed an executive order imposing a 25 percent tariff on all Canadian goods entering the country and a 10 percent tariff on energy products. This was met with a 25 percent counter-tariff announcement by Canadian Prime Minister Justin Trudeau.

Due to the close trading relationship between the countries, the ramifications of rising costs of raw materials, equipment, and services would be felt across the construction industry. On the morning of February 3, Canadian and American trade associations issued statements addressing the potential trade war that was, at the time, imminent.

The Canadian Construction Association 

The impacts of this trade conflict would be felt throughout the Canadian economy and have a direct impact on the construction industry. These measures would be likely to impact not only the ability of construction operators to meet their project requirements but also the supply chains that the Canadian industries rely on altogether.

"Canada's construction industry is disappointed to see the imposition of tariffs," said Rodrigue Gilbert, president of the Canadian Construction Association (CCA). "We appreciate that the federal government has issued a strong response to President Trump's senseless tariffs and will hold consultations with industry on further measures."  

CCA will continue to monitor the impact of these economic measures on the construction industry and will work with all levels of government so that we can all build a strong foundation for Canada's future.

The Association of Equipment Manufacturers 

AEM senior vice president Kip Eideberg issued the following statement regarding President Trump's announcement that the administration was planning on implementing 25 percent tariffs on Canada and Mexico, and 10 percent tariffs on China:

"President Trump is right to focus on securing our border and protecting American communities. But levying tariffs on goods that U.S. equipment manufacturers depend on not only jeopardizes the President's agenda, including the Trump Administration's plan for a stronger, more competitive America, but drives up costs for U.S. equipment manufacturers, disrupts our supply chains, and exposes our customers to retaliatory tariffs. The fact remains: tariffs are a tax paid by Americans, and their broad-based application will stifle economic growth and undermine the competitiveness of the United States."

He continued, "equipment manufacturers stand ready to work with the Trump Administration on a trade strategy that holds bad actors accountable, safeguards the benefits of the successful United States–Mexico–Canada Agreement, and bolsters equipment manufacturing in North America."

Tariffs paused for 30 days 

Although the tariffs were meant to go into effect at midnight on February 4, the two countries have reached a temporary agreement. In a statement shared on his X account on the afternoon of February 3, Prime Minister Trudeau said that he had spoken on the phone with Mr. Trump and the two have collectively decided to pause the tariffs for 30 days. The two world leaders are expected to continue speaking and more updates are to come.