- Report, developed in partnership with Control Risks, found that recent tariffs on key construction materials are inflating input costs and delaying projects.
- Canadian construction firms are particularly vulnerable due to their reliance on imported steel and aluminium.
Construction companies must adopt a proactive and strategic approach to managing geopolitical volatility, embedding risk awareness at the highest levels of decision-making if they are to avoid potential supply chain disruptions, a report from business insurer QBE has advised.
According to Trade tensions and the construction sector: Navigating supply chain disruption, developed in partnership with Control Risks, recent tariffs on key construction materials such as steel, aluminium, timber and copper are already inflating input costs and delaying projects in North America and Europe.
Canada’s construction industry remains dependent on imported materials, particularly steel, aluminium, cement, and electrical components.[1] The United States recently announced tariffs on Canadian imports outside the Canada - United States - Mexico Agreement will rise to 35%, and 40% for goods re‑routed through other countries.
Key findings include:
- Steel and aluminium are among the most exposed materials, with US tariffs on Canadian imports already pushing prices to multi-year highs.
- Timber costs globally are surging due to US-Canada disputes.
- Copper prices have spiked 29% in early 2025, driven by tariffs and sustained demand from electric vehicle and renewable energy sectors.
The Canadian construction industry is a significant contributor to the nation’s economy, employing over 1.6m people, generating approx. $151bn annually and representing more than 7% of its GDP. [2]
For construction businesses, the report notes that the priority is to strike a strategic balance: building resilience and adaptability while managing the higher costs and operational demands of an increasingly fragmented global landscape.
QBE Director of Canada Ben Hunter said:
“The confluence of global supply chain disruptions, rising material costs, labour shortages and sustainability goals presents a complex risk landscape for the Canadian construction sector. Canadian construction firms need to manage their supply‑chain risks closely, be dynamic in financial planning, and work with partners who understand the evolving trade landscape.
"Proactively engaging with insurers and leveraging specialist solutions can help Canadian construction firms manage project continuity and financial stability in the face of uncertainty.”