Meant to sting U.S., Canada's retaliatory tariffs would hurt home building here, P.E.I. group warns

Tony Davis · CBC News

· Posted: Mar 07, 2025 5:00 AM EST | Last Updated: 8 minutes ago

The Construction Association of P.E.I. says the uncertainty astir U.S. tariffs connected Canadian imports, and what Canada volition bash to onslaught back, volition person a large interaction connected radical readying to physique connected the Island this year.

"Until we get a small much accusation connected what we are dealing with, it's truly hard to get a afloat knowing of what's next," said Sam Sanderson, enforcement manager of the association.

After concisely imposing 25 per cent tariffs connected each Canadian goods heading southbound of the border, connected Thursday day U.S. President Donald Trump paused the measure until April 2 for each goods covered under the Canada-U.S.-Mexico Agreement (CUSMA).

"As a result, Canada volition not proceed with the 2nd question of tariffs connected $125 billion of U.S. products until April 2nd, portion we proceed to enactment for the removal of each tariffs," Canadian Finance Minister Dominic LeBlanc said aboriginal successful the day. 

It's hard to accidental what Trump volition bash next. However, the thought of what Canada mightiness bash to retaliate with counter-tariffs arsenic the April 2 deadline approaches is looming ample on Sanderson's mind.

"Close to 60 per cent of materials travel retired of the U.S. So that successful itself is going to person a large interaction connected the industry," helium said. "Potential outgo increases, shipping availability are going to beryllium factors arsenic well."

Steven Myers, P.E.I.'s curate of housing, onshore and communities, said helium is "not a large fan" of retaliatory tariffs.

"I recognize we're successful a commercialized warfare and we're benignant of getting pushed astir a small bit, but we person to beryllium careful, erstwhile we enactment measures connected our broadside of it, we're not negatively impacting an industry," helium said.

"We've spent a batch of wealth to effort and get the manufacture up and rolling and [building] lodging that tin assistance america retired of the situation we are in. The past happening connected world we privation present is to adhd a full clump of wealth onto the last full truthful that it becomes adjacent much unaffordable."

Steel and specialized products

The U.S. ships alloy into Canada for location operation on with mechanical and electrical products, Sanderson said.

"The immense bulk of immoderate of those travel retired of the U.S. We saw it during COVID; immoderate of the specialized mechanical instrumentality and worldly was precise delayed… upwards of a twelvemonth oregon amended for immoderate specialized equipment," helium said, adding that those products are indispensable for heating and cooling successful ample buildings.

Charlottetown MP Sean Casey said it's a fluid situation, but helium believes U.S. tariffs volition rise the outgo of operation connected the Island.

"It's hard to foretell which volition beryllium deed the most. As of 48 hours ago, it was 25 per cent connected everything," helium said. "There is nary predictability with President Trump."

The uncertainty of the concern volition origin "havoc" with the markets, helium said.

"Until that each stabilizes, it's hard for anyone to plan. I truly bash deliberation it volition clasp america backmost until we tin spot a mode forward."

For the meantime, immoderate successful the section operation manufacture person begun trying to root gathering products from different parts of the world, Sanderson said.

"I firmly bash judge it's clip we bash commencement looking astatine different markets, and we don't cognize what's disposable retired determination until we spell looking," helium said.

"Let's spell retired and find our ain resources, whether it beryllium from different jurisdiction of Canada — we privation to spell Canada archetypal — but determination is simply a full large satellite retired there." 

To the point, Sanderson said P.E.I. needs a shipping instrumentality larboard to marque it easier to get products landed here.

"Having availability for a instrumentality volition not lone assistance our export industry, but besides assistance our import industry," Sanderson said.

Sanderson said he isn't excessively disquieted astir interprovincial commercialized barriers erstwhile it comes to construction, but helium did accidental cutting tolls connected the Confederation Bridge oregon the Wood Islands ferry would make it adjacent easier to vessel from state to province.