Calgary’s construction industry is hoping the threat of American tariffs doesn’t slow its momentum in 2025.
U.S. President Donald Trump continued to taunt Canada with the threat of a 25 per cent import tax Friday, one that could potentially hit a large chunk of Canuck producers and suppliers.
Bill Black, the head of the Calgary Construction Association, says when it comes to certain building materials, the tariffs could cause unrepairable damage.
“Lumber suppliers selling are obviously going to feel a really significant impact on their volume that goes into the U.S.,” Black said.
“The overall viability of the lumber business is based on a blend of the two markets, and if one market becomes unfeasible because of tariffs, that then puts pressure on the operating businesses.
“That could impact their ability to service the Canadian market as well.”
Calgary builders, in particular, have a lot at stake.
The city has seen consecutive years of a record number of housing starts, and those in the sector don’t want to lose vital momentum.
“We need to be able to build homes, and we need to be able to build them faster than we have been,” Supply-Build Canada’s Liz Kovach said.
“We need to focus on creating policies or removing policies and barriers to help continue to achieve the affordable housing.”
Needed trade
In Asheville, N.C., on Friday, Trump said his country doesn’t need Canadian lumber because it produces the product too.
But that could be an oversimplification.
Last year, America’s Canadian softwood imports accounted for almost 24 per cent of U.S. lumber consumption.
And of Alberta Forestry’s $2.8 billion in trade south, $994 million is in lumber. If it gets more expensive to move that product, Black says everyone loses.
“When COVID supply chain issues started happening and the volatility in product pricing was literally changing daily, it created a complete realm of uncertainty,” he said.
“That’s very similar to what this is going to feel like while the whole scenario plays out.”
The threat alone already has some considering stocking up and others cutting deals ahead of what could be massive change come Feb. 1.
Alberta’s forest ministry reiterated the importance of cross-border trade Friday, saying there’s still optimism a tariff-stopping solution can be found.
