50% Canada-U.S. Tariffs Hit Construction: What Happens Next?

Canada-U.S. tariffs are hitting construction, raising new questions about material costs, steel prices, procurement, contracts, and who ultimately pays when prices suddenly change.

With new 50% U.S. tariffs affecting billions of dollars of Canadian goods and Canada preparing retaliatory measures, construction materials including steel, aluminum, lumber, cement, plywood, paint, and other building products are caught in the middle.

In Episode 48 of What the RFI?, Matt Brennan looks beyond the political headlines and asks what the latest Canada-U.S. trade dispute could actually mean for construction projects on both sides of the border.

Material pricing is already volatile. On a recent project, a U.S. steel detailer described steel pricing that had previously been around $1 per pound now exceeding $3.50 per pound. Tariffs aren’t necessarily responsible for that entire increase, but it’s a real-world example of how quickly construction pricing can change.

The bigger Construction Administration question is what happens when those increases reach a project that has already been tendered or is under construction.

Who carries the additional cost? What does the construction contract say about tariffs, duties, taxes, and material escalation? How should a tariff-related change be evaluated? What documentation should contractors provide? And could this uncertainty lead to larger contingencies, shorter quote-validity periods, earlier procurement, and more substitution requests?

Because tariffs might be negotiated in Ottawa and Washington, but eventually they can find their way into our tenders, procurement, RFIs, substitution requests, change orders, and construction budgets.

Chapters

• 00:00 — 50% Tariffs and Construction
• 01:36 — What Happened With Canada-U.S. Trade Talks?
• 03:20 — Construction Materials Affected by Tariffs
• 05:14 — Why Tariffs Matter to Construction
• 05:31 — Steel Prices: $1 to Over $3.50 Per Pound
• 09:35 — Why U.S. Construction Could Be Affected Too
• 12:58 — Construction Pricing and Tariff Uncertainty
• 16:04 — What Happens to Existing Construction Contracts?
• 16:47 — Proving Tariff-Related Construction Costs
• 19:40 — Get Ready for Substitution Requests
• 22:00 — What Construction Teams Should Do Now
• 23:42 — What Happens Next?

Recorded August 24, 2026.

The Canada-U.S. trade situation is developing quickly. Tariffs, counter-tariffs, and trade policies discussed in this episode reflect information available at the time of recording and may change.

🎙️ What the RFI? is a podcast about Construction Administration and the real-world challenges that happen between the drawings and the finished building.

Are tariffs already hitting your construction projects? Tell me what you’re seeing in the field.

Got an RFI for Matt? Send it here!

🎙️Website - WhattheRFI.com

🍏Apple Podcast - What the RFI?
🎧Spotify - What the RFI?
🎥YouTube - @WhatTheRFI