WHAT IT MEANS FOR BC’S CONSTRUCTION INDUSTRY  

The BC construction industry is facing significant uncertainty as the United States moves closer to imposing sweeping tariffs on all US imports. If, and when implemented, these tariffs — along with potential retaliatory measures from Canada — will impact businesses in the Industrial, Commercial, Institutional, and Residential (multi-unit) (ICIR) construction sector. Rising costs and supply chain disruptions will create challenges for contractors, suppliers, owners, and developers alike, reinforcing the need for long-term, proactive planning, and risk management. 

This could also result in significant effects on exchange rates in Canada, primarily through inflationary pressures, interest rates, trade imbalances, and investor confidence. 

SHORT-TERM 

BCCA echoes the sentiments from the Canadian Construction Association (CCA) and emphasizes the importance of understanding and carefully reviewing contract provisions to mitigate financial risk. Industry members should ensure duty provisions are addressed in bid documents, as outlined in GC 10.1 of CCDC 2, and be prepared to negotiate cost recovery mechanisms for unforeseen tariff-related expenses.  

Our advice: going forward, don’t bid and don’t sign a contract without clear duty provisions.  

Resulting supply chain disruptions and delays will further escalate costs, making it essential for contractors to be aware of their contractual rights. As part of our longstanding efforts to support best practices, BCCA encourages all industry members to mitigate the uncertainty we are in by planning, staying informed and leveraging available resources to navigate these uncertainties effectively – always read your contracts and talk to your legal counsel. 

LONG-TERM 

BCCA remains committed to advocating on behalf of BC’s construction industry, working alongside national and provincial partners to ensure fair and sustainable trade policies. While addressing the immediate challenges posed by tariffs, we must also consider long-term strategies, including potential trade diversification, to safeguard the industry against future disruptions. Our focus remains on strengthening the resilience of BC’s construction sector and supporting businesses as they adapt to an evolving economic landscape. 

SOME OF WHAT WE’VE DONE, AND WHAT WE’RE DOING TO SUPPORT CONTRACTORS IN BC

• Members only webinar in early February on preparing for U.S. Tariffs
• Providing ongoing, real-time updates, accessible through the Activity feeds below
• Developed a checklist for Navigating Tariff Uncertainty
• Added a  We Sell Canadian Products filter to BCCA’s BidCentral Directory
• Providing link to Government of Canada official counter-tariff measures