Like many other industries, construction has been and may continue to be negatively impacted by the ongoing trade war with the United States.
While U.S. President Donald Trump's approach to tariffs affecting Canada has fluctuated, there has been a 25 per cent duty on Canadian steel and aluminum.
BC Premier David Eby recently stated that Canada should be "prepared and stand on our own two feet" and that American contracts should be cancelled "wherever viable."
The effects of U.S. tariffs were discussed during Day 2 of the 2025 Build the North Conference in Prince George. Sajjid Lakhani, director of government relations and strategy at Impact Public Affairs, gave a presentation on this issue.
“Of course, tariffs are top of mind,” said Lakhani. ”BC's response to tariffs has been quite robust in terms of influence in the media and working with stakeholders. The premier has assigned Housing Minister Ravi Kahlon, to lead the tariff war room. it's interesting to note, most war rooms of this capacity would be led by the Finance Minister. It shows that this government is very committed to the housing aspect, which is better for the construction industry to have someone like that lead the tariff boardroom and to be top of mind on these issues.”
Lakhani wasn’t the only one with tariffs on his mind during the conference, as Chris Atchison, president of the BC Construction Association, also weighed in on the issue.
“Initially, it’s not going to have a huge impact on the construction industry,” said Atchison. “We’re not major exporters in construction to the U.S. What’s going to have the major impact on the construction industry is when retaliatory tariffs come into play and Canada responds. That’s going to make it more expensive to build. It’s going to take more time to establish other supply chains, and the supply chains we remain dependent on in the U.S. will mean material costs are going to increase for projects in British Columbia.”
In an interview with The Citizen, Lakhani discussed key ways the industry can navigate the uncertainty caused by the constant changes of the ongoing trade war.
“It’s a tough business because both will have lasting impacts,” said Lakhani. “Whether they stay or go, the impacts are already there. It seems the president is just trying to announce so many policies and so many changes that the media and the courts can’t keep up. So in terms of navigating that uncertainty, it’s going to be really important to have very in-sync communication because you can’t predict the future. As I said, it’s like flipping a switch every day. So it’s going to be important to hope for the best but expect the worst.”
Lakhani noted that smaller construction businesses may be among the most affected during these uncertain times. He outlined a few ways they can mitigate the effects of tariffs and their consequences.
“For the mom-and-pop businesses, I really feel for them,” said Lakhani. “It’s really tough to have that pressure from the top down, and when you’re looking at unaffordability, it’s at a peak right now — interest rates, mortgages, you name it. It’s just a very economically uncertain time right now. What I would suggest is listening to the supportive stakeholders, being part of the regional construction association, being part of the team that the Northern Regional Construction Association (NRCA) provides, for example, or the BC Construction Association. Rely on them to communicate the current issues of the day as well as the actions and insights the industry has taken.”
Lakhani also said he hopes people in the industry will get more involved in the fight against U.S. tariffs.
“If you’re not at the table, you’re on the table. So what I’d love for them to take away from my presentation is to get involved — join the NRCA. If they’re from other parts of BC join their local regional construction association and just get involved. Speak to your local MLA, your MPs. Just put yourself out there, because we’re facing one of the largest existential crises we have as a country, and it’s going to be important for the business community to be represented in that.”
