How Tariffs Are Impacting Commercial Construction Costs in Calgary and Edmonton 

Tariff changes in 2025 are driving up the costs of many construction materials. The U.S. has imposed 25% tariffs on imported steel and aluminum (including derivatives), and Canada has retaliated with matching 25% tariffs on U.S. goods worth about $29.8 billion (canada.ca). Analysts note that a broad range of building supplies is affected. For example, a Dentons report lists items like structural steel beams and columns, hardware for doors and windows, aluminum framing and panels, and prefabricated building components as all subject to the new 25% duties (dentons.com). With these tariffs, even ordinary items like sheet piling, cables and metal fittings have become more expensive. In practice, contractors in Alberta are already feeling it – Saul Ewing LLP notes that “steel costs [have] risen since December 2024,” as U.S. producers scramble to meet demand while relying on imports (saul.com). 

The heavy steel framing used in many commercial projects is now much costlier. Industry forecasts warn that overall construction pricing could climb again as these duties take effect. The Altus Group’s 2025 Canadian Cost Guide states that “US and Canadian tariffs are directly impacting construction material costs,” noting that about 8.1% of total construction expenses involve materials imported from the U.S. (altusgroup.com). Even though many Canadian projects use mostly domestic materials, the tariffs hit key high-cost items. For example, reported spikes in steel and aluminum prices have put particular strain on high-rise, office and infrastructure projects that rely heavily on structural metal (saul.comdentons.com). In practical terms, contractors are seeing higher quotes from suppliers and longer lead times. Builders often face a choice: order large quantities of tariff-affected items now (and carry inventory costs) or risk delays and potential price increases latercanada.constructconnect.com. 

Local construction leaders confirm the uncertainty. Surveys by industry associations show many firms are worried. The BC Construction Association found that 30% of members are “extremely concerned” about tariff impacts, and 20% fear their contracts don’t shield them from new costscanada.constructconnect.com. In Calgary and Edmonton, contractors report that owners are generally not assuming tariff risk, leaving contractors to absorb it. As Calgary Construction Association president Bill Black observes, this will likely reduce the number of bids on projects: firms may simply refuse to bid when tariff costs are uncertaincanada.constructconnect.com. Some smaller contractors are scrambling to renegotiate terms; others are already delaying projects while waiting for clarity. 

To manage these challenges, experts recommend proactive planning. Key strategies include reviewing and updating contracts and project budgets, and moving procurement decisions earlier in the process (saul.com). For example: 

• Review Contracts: Add or tighten cost-escalation and force-majeure clauses so that increased material tariffs can be shared or passed through to owners, if possible. 

• Source Early (and Diversely): Lock in prices by ordering steel, aluminum, doors and hardware ahead of time. Explore alternate suppliers — including domestic producers or suppliers in non-U.S. markets — to mitigate the risk if one supply source is hit by tariffs or delays (saul.com). 

• Consider Design Alternatives: Where feasible, evaluate material substitutions (e.g. using different alloys or design methods) or modular components sourced from within Canada. In some cases, “alternative approaches” such as containerized modules are being explored to reduce reliance on tariffed items (saul.com). 

• Communicate and Coordinate: Work closely with owners, designers and trades to share information about tariffs. For example, contractors and clients should discuss whether contracts allow passing on tariff costs, and owners may consider adjusting project scopes if key components rise in price (dentons.com, canada.constructconnect.com). 

By planning early and building flexibility into bids and timelines, Alberta builders can help blunt the tariff shock. The construction sector is used to price swings and supply issues (as seen during COVID), so many firms view this as a new “wildcard” to manage (altusgroup.com). Remaining informed of ongoing trade policy changes and potential code updates (especially for building materials) will be crucial. As one industry commentator notes, “the industry is facing a new pricing reality” — but by staying proactive, developers and contractors can adapt their projects and budgets before costs escalate dramatically (saul.com).