CANS Canada-U.S. Tariff Info Centre

What does the Canada-U.S. tariff war mean for your business?

To help our members remain informed and act proactively in the face of these tariffs, CANS has compiled the latest information from government and industry. This dedicated web page will be updated regularly with key announcements, recent news, and useful links and resources.

Do you know how your business will be impacted?  The tariffs and countermeasures will have a significant impact on the Canadian economy and the construction industry. Potential material cost increases, driven by currency fluctuations and tariff threats pose significant risks. The construction industry’s success will hinge on its ability to adapt to shifting trade dynamics amid upcoming challenges.

Statements from Leadership

Premier’s Office: Statement on U.S. Tariff Announcement

April 2, 2025 | “Moving forward, there will still be impacts from the trade direction of the U.S. administration. Our work to diversify markets will not change. In fact, it will ramp up. And, of course, we will work with those who remain impacted on both an individual basis and larger-scale programming basis, as needed.

“This could mean loans, grants, support for diversification or whatever. We will work with you to find the best support for your circumstance.

“During this period of uncertainty, the initial non-tariff retaliatory measures we put in place will remain. This means we will continue to look for ways to put Nova Scotia and Canadian companies first as we review and cancel non-essential contracts with U.S. suppliers.”

Recent statements from Government of Nova Scotia:

Prime Minister’s Office: Canada announces new countermeasures in response to tariffs from the United States of America

April 3, 2025 | “The U.S. tariffs will do harm to American workers and businesses, but Canada will also be impacted, with every Canadian feeling the effects. The Government of Canada’s position has always been clear: we will fight these tariffs, protect our workers, and build the strongest economy in the G7.”

Recent statements from The Prime Minister’s Office:

The White House: President Donald J. Trump proceeds with responsive tariffs on global imports

April 2, 2025 | “Today, President Donald J. Trump declared that foreign trade and economic practices have created a national emergency, and his order imposes responsive tariffs to strengthen the international economic position of the United States and protect American workers.”

Recent statements from The White House:

Overview of Canada’s Retaliatory Measures

As of 12:01 a.m. ET on March 4, Canada has imposed a $155-billion package of retaliatory measures, including a 25 per cent retaliatory levy on $30 billion in goods, and tariffs on the remaining $125 billion in 21 days. These will remain in place so long as the U.S. ones are, and other non-tariff measures are being discussed.

As a first response to the direct threat posed by U.S. tariffs, Canada imposed 25 per cent reciprocal tariffs, effective March 13, 2025, on a list of steel products worth $12.6 billion and aluminum products worth $3 billion, as well as on additional imported U.S. goods worth $14.2 billion, for a total of $29.8 billion.  Prime Minister Mark Carney announced another 25 per cent tariff on March 27, on all cars coming to Canada from the U.S. This matches the massive automotive tariffs coming into force by the U.S. on April 3.

Tariff remission. The Halifax Chamber of Commerce shared helpful information from Finance Canada that outlined a discretionary remission process for Canadian importers that might have been impacted by Canada’s retaliatory tariffs.  The remission process applies to the first round of Canada’s retaliatory tariffs and any subsequent rounds.

The Canadian government is considering requests for remission in these two instances:

  1. Situations where goods used as inputs cannot be sourced domestically, either on a national or regional basis, or reasonably from non-U.S. sources
  2. To address, on a case-by-case basis, other exceptional circumstances that could have severe adverse impacts on the Canadian economy. In granting a remission order, the Government of Canada will weigh public policy reasons in the factual circumstances against the policy rationale of the retaliatory tariffs.

Government of Canada: Process for requesting remission of tariffs that apply on certain goods from the U.S.

Questions regarding remission requests can be shared directly with Finance Canada at fin.remissions-remises.fin@canada.ca.

Protect Your Business

The more you proactively prepare your business for possible tariffs, the more you can mitigate their impact on your operations. See below for some tips on where to start as you navigate potential challenges.

Review your current contracts.

Look at clauses for price escalation, change-in-law, and force majeure.

Diversify your supply chain.

Reduce your dependency on cross-border materials by sourcing from suppliers in our region. Forge new and strengthen existing relationships for long-term partnerships that allow for more collaboration and flexibility in sourcing supplies amid trade uncertainty.

Explore alternative products or suppliers from countries not impacted by the tariffs.

Cost management and pricing strategies.

Reduce waste and optimize material usage. Lock in pricing with bulk purchases before tariffs are implemented — especially useful for materials with long-lead times. Factor in potential cost increases with pricing projects.

Engage in strategic planning.

Manage your cash flow to handle unexpected fluctuations and model different economic scenarios to develop contingency plans to adapt quickly in uncertainty.

Proactive risk management.

Account for potential trade difficulties and build extra time into project schedules. Communicate clearly and proactively with clients around budget and timeline expectations. Expand contingency budgets to absorb potential cost increases.

News

U.S. Tariff Rollout

Resources and Tools

The Business Development Bank of Canada (BCD) has released a number of resources and articles to help you prepare your business:

CBC: Everything you want to know about the Canada-U.S. tariffs.

Canadian Chamber of Commerce: What the Return of the “Tariff Man” Means for the Canadian and U.S. Economies.

U.S. Customs: Guidance on Additional Duties on Imports from Canada.

United States International Trade Commission: Note 11 of the Harmonized Tariff Schedule of the United States. This document outlines what qualifies as USMCA origin.

Government of Canada: List of products from the United States subject to 25 per cent tariffs effective March 4, 2025.

Construction-related goods now subject to a 25% tariff:

  • HS Code 4408 – Veneer sheets and wood sheets for plywood or other wood products
  • HS Code 4418 – Builders’ joinery and carpentry of wood (doors, windows, and their frames)
  • HS Code 8418 – Refrigerators, freezers, and heat pumps
  • HS Code 8516 – Electrical water heaters and space heaters
  • HS Code 8205 – Hand tools, including hammers, screwdrivers, and wrenches
  • HS Code 8302 – Metal fittings for buildings (hinges, locks, brackets, and other mountings)

Tariff Response Hotline: The Province of Nova Scotia has established a tariff response hotline and survey to collect perspectives and concerns from Nova Scotian businesses and individuals.

To share your feedback, call the hotline toll-free: 1-800-670-4357.

Tariff and Customs Advisory Program (TCAP): The Tariff and Customs Advisory Program (TCAP) is a new initiative to help Atlantic Canadian businesses not just navigate tariffs, but optimize supply chains and stay compliant with trade regulations.

Learn more: https://investnovascotia.ca/export/programs-services/tariff-and-customs-advisory-program

Nova Scotia Loyal: Nova Scotia Loyal is a new government program designed to make it easier for Nova Scotians to identify, purchase, and support local products. Producers and retailers of Nova Scotian Products can apply to be featured in the program.

Learn more: https://nsloyal.ca/en

Construction Quarterly Economic Insights: Winter 2025: Amidst a challenging economic climate marked by trade uncertainties and rising borrowing costs, the Canadian Construction Association’s (CCA) winter report highlights how trade policies and material dynamics are impacting the construction industry. Download your copy here, or  watch a briefing on this report.

Key Takeaways:

  • Canada’s reliance on imports for critical materials like steel, aluminium, and lumber makes the sector particularly sensitive to trade disruptions.
  • The construction industry’s GDP experienced modest growth in Q3 2024, reflecting the industry’s resilience in navigating economic uncertainties.
  • Investments in multi-residential projects continued to drive growth, increasing during the third quarter.
  • The industry must focus on building resilient supply chains and reducing reliance on volatile import markets.

Did You Know?

  • Canada and the U.S. share the world’s largest bilateral trading relationship in the world. (source)
  • Nearly $3.6 billion (US$2.7 billion) worth of goods and services crossed the border each day in 2023. (source)
  • Comparatively, interprovincial trade accounted for more than $530 billion worth of goods and services in 2023 — almost 20 per cent of Canada’s gross domestic product. (source)
  • Canada is the largest export market for 36 U.S. states and ranks among the top three for 46 states; 43 states export more than $1 billion annually to Canada. (source)
  • About 70% of U.S. imports from Canada are used in the manufacture of other goods. (source)
  • Nova Scotia exports to the U.S. were $4.4 billion and imports were $682.7 million in 2023. (source)

Top U.S. Exports to Canada

  1. Automotives
  2. Machinery
  3. Energy
  4. Electronics
  5. Plastics
  6. Precision Instruments
  7. Aircraft
  8. Precious Stones & Metals
  9. Iron & Steel Products
  10. Chemicals

Top U.S. Imports from Canada

  1. Energy
  2. Automotives
  3. Machinery
  4. Plastics
  5. Precious Stones & Metals
  6. Aluminium
  7. Wood
  8. Electronics
  9. Iron & Steel
  10. Aircraft

Background

On Saturday, February 1, 2025, President Trump signed an executive order imposing 25% tariff on imported goods from Canada, Mexico and China. On March 4, 2025, U.S. tariffs of 25 per cent on Canadian goods, and 10 per cent on energy exports from Canada imported into the U.S. from Canada, came into effect. The U.S. has indicated that this action is in response to national security concerns, particularly related to illegal immigration and the flow of fentanyl and other drugs into the U.S.

On March 12, 2025, the U.S. imposed tariffs of 25 per cent on Canadian steel and aluminum products.

In response, the Government of Canada swiftly announced countermeasures, introducing targeted tariffs on American goods to protect Canadian industries and workers.

Additional Information

Recent Announcements and Press Releases:

The Canadian Construction Association (CCA):

Backgrounders and Supporting Information:

Advocating for Industry

Given the significance of these announcements, CANS along with the CCA will continue to work around the clock and take the necessary time to fully assess how these tariffs will be implemented and their impact on Nova Scotia’s construction industry.

We remain committed to keeping you informed and will continue to update this page as the situation evolves. In the meantime, we are here to support you. Please do not hesitate to reach out with any questions or concerns about the impacts of these tariffs and countermeasures.

If you have any feedback on this issue, please share your concerns with:

Alison Clack
Manager, Marketing & Communications
aclack@cans.ns.ca
902-468-2267 ext. 711