Rising costs from Canada-U.S. trade war putting pressure on Brandon construction firms

Skyrocketing costs and unpredictable tariff policies in the continuing trade war between Canada and the United States are forcing construction companies to reconsider some projects, with some put on hold or scrapped, an industry official says.

On March 11 the White House said President Donald Trump will go ahead with a 25 per cent tariff on Canadian steel and aluminum, with additional tariffs expected on April 2.

Bracing for price hikes on Canadian goods, Brandon's builders are scrambling to buy products including lumber and steel or find new suppliers.   

"It makes it hard … to plan a project that might not be built for a year or two years out, but they have to forecast the price now," said Shawn Wood, executive director of the Construction Association of Rural Manitoba. "Really, it's picking a number out of a hat." 

Prepping for summer projects has been a whirlwind of figuring out product prices and where to get building materials, says Matt Berg, president of Livingstone Landscaping in Brandon. He says tariff uncertainty already has some clients pumping the brakes on projects.

"Customers are confused. We're confused. Not a whole lot of people know what's going to be happening," Berg said. 

Berg says his firm is researching products that can be found in Canada to help limit tariff impacts and offer more predictable pricing. 

However, he adds, it's hard to figure out whether it's worth switching to a new supplier when they don't know how tariff threats will play out. 

"You don't want to really make that investment into a huge change if this is … short-lived," Berg said.

Wood says tariffs on products such as lumber, steel, oil and aluminum affect all parts of construction, from the cost of insulation to asphalt shingles. Those costs are major factors in bidding on a project.

He expects projects already in place will stay the course, but warns construction projects will slow down if material prices soar. 

"Depending on how quickly more tariffs come into place, it may not be an option for places to stay open," Wood said. "If we can't get the material, if we can't make project deadlines … that could cost companies hundreds of thousands, of billions of dollars."

Keller Developments, which is building a 132-unit complex on Brandon's North Hill, expects to start moving people into some units on May 1.

It's taken about five years to get the units planned, built and move-in ready, says owner Evan Keller.