According to Construction Dive, President Donald Trump has announced plans to impose a 50% tariff on many Canadian imports beginning August 19, a move that may force general contractors to revise contract terms. The proposed duties will apply to all covered goods regardless of whether they originate under the U.S.-Mexico-Canada agreement, according to a July 20 fact sheet from the White House cited by the outlet.
Cement emerged as the clearest area of concern among the affected materials, according to two construction attorneys interviewed by Construction Dive. Jason Adams, partner at Cox, Castle & Nicholson, said "the tariff imposes a 50% tariff on cement, so that appears to be the biggest concern," adding that it "will impact concrete-intensive projects such as highways, bridges and foundations." Trent Cotney, partner and construction team leader at law firm Adams & Reese, said increased cement costs could affect highways, infrastructure, industrial facilities, multifamily developments and large commercial projects. Steel, aluminum and copper products, already subject to Section 232 tariffs, are excluded from this particular tariff action, Cotney told the outlet.
Cotney described the tariff as adding yet another calculation for general contractors to track and said the greatest implication is additional cost and uncertainty, noting that a 50% tariff can quickly make existing estimates obsolete and increase the risk of disputes over who bears the extra cost. Adams made a similar point, telling Construction Dive that constantly fluctuating material pricing prohibits a contractor's ability to confidently bid fixed-price work, and recommended that firms consider a materials escalation and change-in-law clause in every agreement to share the risk of an unforeseen price escalation.
Cotney advised general contractors to immediately review existing agreements to determine whether tariff, change-in-law, force majeure or change-order provisions could offer relief, and to obtain updated supplier quotes while confirming how long that pricing would remain valid. He also said contractors should review applicable tariff classifications before assuming that every Canadian construction product is covered, and should provide written notice as soon as a potential cost or schedule impact becomes apparent.