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Major Tariff Changes Coming April 2 (or Sooner!) - How to Protect Your Projects

March 19, 2025 at 10:00amThis Week
Kenneth E. Rubinstein, Nicholas A. Dube
Webinar

Join us March 19 to hear more about the latest developments and learn more about effective risk management tactics and best practices for safeguarding your projects

The construction and supply chain industries continue to face significant uncertainty as U.S. trade policy evolves–and with a major tariff announcement expected on April 2, the risks are only increasing. Contractors, subcontractors, and owners must prepare for potential material price spikes, delays, and supply chain disruptions.

Recent Developments

In the past nine days, we have seen several impactful changes, including:

  • Tariffs on Canada and Mexico (March 4): The U.S. imposed a 25% tariff on all imports from Canada and Mexico, with Canadian energy exports (excluding oil and electricity) subject to a 10% tariff.

  • Canada's Response (March 4): In retaliation, Canada imposed a 25% tariff on $30 billion worth of U.S. goods, with plans to expand this to $125 billion. Canadian officials argue that the U.S. tariffs violate the United States-Mexico-Canada Agreement (USMCA).

  • Partial Suspension of Tariffs (March 6): The U.S. announced a 30-day suspension of tariffs on goods complaint with the USMCA, temporarily exempting certain imports.

  • Ontario's Electricity Surcharge (March 10): Ontario imposed a 25% surcharge on electricity exports to key U.S. states in response to U.S. tariffs.

  • Doubling of Metal Tariffs (March 11): President Trump announced plans to double tariffs on Canadian steel and aluminum imports to 50%, later retracting the increase after Ontario withdrew its surcharge.

  • Global Steel and Aluminum Tariffs (March 12): The U.S. implemented a 25% tariff on all steel and aluminum imports worldwide. In response, Canada set tariffs on $20 billion of certain U.S. exports beginning on March 13, and the European Union announced additional tariffs on $28 billion of certain U.S. exports, expected to begin on April 1.

  • Changes Continue to Come Rapidly: In the seventy-two hours ahead of this message, rapid-fire tariff announcements have changed the landscape of global trade and more changes are likely to continue.

Upcoming Tariff Change on April 2

President Trump is expected to announce sweeping reciprocal tariffs that will match the cumulative tariffs and non-tariff barriers other countries impose on U.S. exports. This could significantly impact material costs and project budgets for the construction industry.

What This Means for Your Projects

These fast-paced changes pose serious risks to project costs and timelines. Owners, contractors, and subcontractors should take steps now to address this risk through contract language and strategic planning.

To help you prepare, Preti Flaherty is hosting a second webinar focused on practical strategies for navigating tariff challenges. We'll break down the latest developments, discuss effective risk management tactics, and provide sample contract language designed to protect your projects from unexpected cost increases and delays.