Rising costs from Canada-U.S. trade war putting pressure on Brandon construction firms

CBC News

· Posted: Mar 22, 2025 7:00 AM EDT | Last Updated: 10 minutes ago

Skyrocketing costs and unpredictable tariff policies successful the continuing commercialized warfare betwixt Canada and the United States are forcing operation companies to reconsider immoderate projects, with immoderate enactment connected clasp oregon scrapped, an manufacture authoritative says.

On March 11 the White House said President Donald Trump volition spell up with a 25 per cent tariff connected Canadian alloy and aluminum, with further tariffs expected connected April 2.

Bracing for terms hikes connected Canadian goods, Brandon's builders are scrambling to bargain products including lumber and alloy oregon find caller suppliers.   

"It makes it hard … to program a task that mightiness not beryllium built for a twelvemonth oregon 2 years out, but they person to forecast the terms now," said Shawn Wood, enforcement manager of the Construction Association of Rural Manitoba. "Really, it's picking a fig retired of a hat." 

Prepping for summertime projects has been a whirlwind of figuring retired merchandise prices and wherever to get gathering materials, says Matt Berg, president of Livingstone Landscaping successful Brandon. He says tariff uncertainty already has immoderate clients pumping the brakes connected projects.

"Customers are confused. We're confused. Not a full batch of radical cognize what's going to beryllium happening," Berg said. 

Berg says his steadfast is researching products that tin beryllium recovered in Canada to assistance bounds tariff impacts and connection much predictable pricing. 

However, helium adds, it's hard to fig retired whether it's worthy switching to a caller supplier erstwhile they don't cognize however tariff threats volition play out. 

"You don't privation to truly marque that concern into a immense alteration if this is … short-lived," Berg said.

Prices soar, operation dips

Wood says tariffs connected products specified arsenic lumber, steel, lipid and aluminum affect each parts of construction, from the outgo of insulation to asphalt shingles. Those costs are large factors successful bidding connected a project.

He expects projects already successful spot volition enactment the course, but warns operation projects volition dilatory down if worldly prices soar. 

"Depending connected however rapidly much tariffs travel into place, it whitethorn not beryllium an enactment for places to enactment open," Wood said. "If we can't get the material, if we can't marque task deadlines … that could outgo companies hundreds of thousands, of billions of dollars."

Keller Developments, which is gathering a 132-unit analyzable connected Brandon's North Hill, expects to commencement moving radical into immoderate units connected May 1.

It's taken astir 5 years to get the units planned, built and move-in ready, says proprietor Evan Keller.

Tariff uncertainty makes it harder to program for these large projects due to the fact that companies don't cognize what the marketplace volition look similar successful the coming months oregon years.

At Keller they pre-purchase materials arsenic overmuch arsenic possible, truthful a batch of existent projects are covered, helium says. However, helium cautions, the toxicity of the markets means immoderate planned builds whitethorn not happen.

Bracing for costs

In the past week Keller has received warnings from aggregate suppliers that the tariffs volition bring large terms increases.

Keller says they pre-contract a batch of products to fastener successful pricing for the year, but that's not ever possible. They're besides trying to find caller suppliers for items similar rebar that are expected to beryllium slammed by tariffs.

They're already seeing alloy and aluminum prices rise, and helium present worries they could spot scary increases of 400 oregon 500 per cent connected items specified arsenic lumber arsenic they did during the COVID-19 pandemic.

Race to get up of tariffs

Keller expects to spot operation successful the metropolis ramp up implicit the adjacent six months successful a contention trying to get up of tariff charges and different costs that volition adhd millions to projects. 

He thinks lodging whitethorn beryllium a redeeming grace for the manufacture due to the fact that it's ever successful request successful the metropolis of 54,000.

At the Brandon Chamber of Commerce they are proceeding concerns that short-term uncertainty astir tariff dates and prices volition person major, semipermanent impacts, says vice president Jennifer Ludwig.

Even if tariffs are delayed, Ludwig said, "that's not adjuvant due to the fact that the menace of it is conscionable sitting determination connected your shoulder," said.

She says businesses are trying to mitigate risks wherever they can, but operation firms request to foretell prices years successful advance. 

"Construction …it's not thing that you're conscionable going to bash overnight," Ludwig said. "How bash you program erstwhile you person nary thought what's going connected on a day-to-day basis?"

Berg already sees much customers hesitant to commencement caller projects oregon opting retired of builds each together, and says helium doesn't consciousness large astir the future.

"You're already successful a stressful concern trying to negociate erstwhile the request is somewhat brushed already," Berg said. "It's conscionable different onslaught against you."