Edmonton Builders Face Rising Costs Amid Tariff War

The construction industry in Edmonton is experiencing significant challenges due to the ongoing tariff war between the U.S. and Canada. Builders are reporting substantial cost increases on essential supplies, leading to project delays, increased prices, and a dip in customer confidence. This article delves into the specifics of the situation, exploring the key factors contributing to the rising costs and the potential long-term impact on Edmonton's construction sector.

The Impact of Tariffs on Building Supplies

U.S. President Donald Trump's executive order to increase tariffs from 25% to 35% on Canadian goods that do not comply with the Canada-U.S.-Mexico Agreement (CUSMA) has sent ripples through the construction industry. These tariffs affect a broad range of building supplies, including:

• Structural steel beams and columns
• Door and window hardware
• Aluminum framing and panels
• Prefabricated building components
• Sheet piling
• Cables and metal fittings
• Washers, dryers, stoves, HVAC systems, and plumbing components

These increased costs are directly impacting construction material expenses. The Altus Group's 2025 Canadian Cost Guide notes that approximately 8.1% of total construction expenses involve materials imported from the U.S., making the industry particularly vulnerable to tariff-related fluctuations.

Builders' Experiences and Customer Reactions

Issam Saleh, owner of Edmonton-based Vivid Homes, has highlighted the uncertainty that the tariffs have introduced into the market. His company has experienced price increases of around 20%, which has negatively impacted sales. Customers are also exhibiting more caution when closing deals, adding further pressure to the industry.

Scott Fash, CEO for Building Industry and Land Development Association (BILD) Alberta, has pointed out that costs may also arise from Canada's response to the U.S. imposing tariffs. Canadian tariffs on U.S. products are affecting the cost of housing, further complicating the situation for builders and homebuyers alike.

Broader Economic Implications

The rising costs and uncertainty in the construction sector have broader economic implications for Edmonton. Increased construction costs can lead to:

• Higher housing prices, making homeownership less accessible for many Edmonton residents
• Delays in construction projects, impacting economic growth and development
• Reduced investment in new construction, potentially slowing down the city's economic expansion

As the tariff war continues, it is crucial for industry stakeholders to closely monitor the situation and adapt their strategies to mitigate the negative impacts. Exploring alternative sourcing options, implementing cost-saving measures, and advocating for policy changes are all essential steps for navigating this challenging economic landscape.