RC117 MarApr 2025 - Magazine - Page 11
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With a long trade history and extensive reliance on
cross-border trade, the imposition of tariffs poses a
significant risk to the construction industry.
TRIAGE PROCEDURES AND SUPPLY CHAIN DIVERSIFICATION – To address the immediate impact of tari昀昀s, businesses should develop a triage procedure
that prioritizes critical materials, evaluates alternative suppliers, and
adjusts procurement strategies as needed. Diversifying supply chains
to include both domestic and international sources reduces reliance
on tari昀昀-a昀昀ected goods and enhances overall 昀氀exibility. Additionally, businesses should create contingency plans to manage potential
shortages or delays with current suppliers. Building stronger relationships with suppliers through open communication and collaborative planning, including negotiating 昀氀exible delivery terms or bulk
purchase agreements, can help mitigate disruptions and maintain a
steady supply of critical materials.
LEGAL AND STRATEGIC COUNSEL – Engaging legal counsel, consultants, and
industry experts equips businesses to mitigate disputes and prepare
for tari昀昀s. Stakeholders should evaluate project-speci昀椀c risks and
renegotiate terms as necessary. For ongoing projects, maintaining
clear communication with clients about potential delays and cost
escalations can foster transparency and cooperation. Expert guidance
can also help businesses identify creative solutions to minimize disruption. It is noteworthy to point out that the Canadian Construction
Association (CCA) has also emphasized the importance of preparedness, o昀昀ering actionable guidance for businesses to weather the
uncertainties of trade disputes.
By implementing these strategies, construction stakeholders can
position themselves to better navigate the complexities of U.S.–Can-
RENEWCANADA.NET
ada trade disputes. Proactive preparation and a focus on adaptability
will be critical for maintaining project continuity and mitigating
昀椀nancial and operational risks.
In conclusion, the possibility of U.S.–Canada tari昀昀s creates significant uncertainty for the construction industry, which relies heavily
on cross-border trade for essential materials such as steel, aluminum,
lumber, and machinery.
Stakeholders should be proactive by reviewing contracts, adjusting
bids, diversifying supply chains, and tracking material costs to prepare for potential disruptions. Early planning and readiness can help
manage challenges such as higher costs, delays, and labour shortages.
Open communication with clients and suppliers, along with expert
advice, will be essential to adapt to this evolving situation.
While it is unclear which goods might face tari昀昀s or restrictions,
this article highlights the potential impacts and o昀昀ers practical steps
for businesses to manage risks and stay ahead as trade tensions develop. The full impact and timing of these disputes will become clearer
as events unfold, but proactive preparation remains crucial.
This article presents the views, thoughts, or opinions only of the author and not those of any HKA entity. The
information in this article is provided for general informational purposes only. While we take reasonable care at
the time of publication to confirm the accuracy of the information presented, the content is not intended to deal
with all aspects of the referenced subject matter, should not be relied upon as the basis for business decisions,
and does not constitute legal or professional advice of any kind. HKA Global (Canada), Inc. is not responsible
for any errors, omissions, or results obtained from the use of the information within this article. This article is
protected by copyright © 2025 HKA Global (Canada), Inc. All rights reserved.
MARCH/APRIL 2025 – RENEW CANADA 11
