🥊 Fighting words

Together with

Good morning! 🏗️ Were your dreams filled with trade war nightmares? As we teeter on the edge of a massive tariff battle with the U.S., the Canadian construction sector is bracing itself for the worst. Uncover it all in this week’s Big Story.

⏰ Today’s read: 5 minutes

MARKETS

*Stock data as of last market close; currency, oil and crypto data as of 7:30 PM ET Feb. 3, 2025.

Economy: The Canadian dollar experienced extreme swings yesterday, initially plunging below 68 cents U.S. in anticipation of Donald Trump’s 25% tariffs before rebounding over 2.5% to 69.5 cents U.S. after a 30-day postponement was announced. Analysts at CIBC predict further declines if tariffs proceed, while the Bank of Canada sees U.S. trade policies as a major economic risk.

NEED TO KNOW

The week's headlines

Line starts here: 🚃 Calgary City Council has approved a revised Green Line LRT plan, with construction beginning this year in the southeast and planning underway for the downtown segment. Work on the SE segment, from Shepard to the Event Centre, will proceed while the city finalizes design and cost validation for the downtown portion.

Greener pastures: 🐚 Shell Canada is exiting Alberta’s oil sands by trading its remaining 10% stake in the Albian mine for a greater interest in the Scotford upgrader and Quest Carbon Capture project near Edmonton. This move aligns with Shell’s strategy to invest in lower-emission assets, including the Polaris carbon-capture project and the Atlas Carbon Storage Hub.

Damage report: 🚒 The Insurance Bureau of Canada reports that last year’s wildfire in Jasper, Alta., which destroyed 350 homes and businesses, is now the second costliest fire disaster in Canadian history, with damages revised to $1.23 billion.

Waterwork: 💦 Metro Vancouver has formally engaged PCL Construction to complete the North Shore Wastewater Treatment Plant, significantly ramping up construction activity after initial early works began in 2022. Metro Vancouver expects that around 50% of the work to complete the project will be competitively bid among subcontractors, vendors, and suppliers.

THE BIG STORY

Trade war: Construction impacts from Trump tariffs

Nobody knows what tomorrow will bring when it comes to U.S. President Donald Trump’s call for 25% tariffs on Canada. The deadline has been moved numerous times and as of writing this newsletter, the tariffs have been postponed for a month. 

Here’s what the construction sector needs to know. 

The impact would be immense: Homebuilders say tariffs would affect tens of billions of dollars of trade in construction materials alone and would only increase costs and lead to a further slowdown in construction. Associations are saying contractors might disengage from projects or choose not to bid on essential infrastructure. It could also result in owners delaying or postponing projects. The steel industry alone called it a “doomsday scenario” for them. 

What Trump wants isn’t clear: The official reason is border security and the smuggling of illegal drugs. However, less than 1% of these drug seizures originate from Canada. He’s also claimed that the U.S. subsidizes Canada with hundreds of billions of dollars, a statement that has economists puzzled. Essentially, he doesn’t feel like Canada treats the U.S. fairly, even if the data shows our relationship is much more nuanced. 

What Canada is doing about it: Federally, officials have promised retaliatory tariffs on many goods, including construction materials. B.C. and Alberta say they plan to accelerate work on critical private sector projects to boost independence. Ontario said it would ban contracts with American companies. 

Doubling down on Canada: Some have called for cutting introprovincial trade barriers. And Business response appears to be overwhelmingly in favour of fighting back. A KPMG survey found that Nine in 10 Canadian business leaders “wholeheartedly believe” that the federal and provincial governments “must stand firm in protecting Canada’s sovereignty and values” and that includes fighting tariffs with tariffs even if it hurts. Over eight in 10 want a targeted, dollar-for-dollar retaliatory response.

TOGETHER WITH ORION CONSTRUCTION

Last call: Hours remain to get 25 Innovator event tickets

This is your final chance to snag tickets to our 25 Innovators in Construction event. This Thursday, we will be gathering at SiteHQ in abbotsford with some of the industry's most forward-thinking companies for an evening of drinks, tech demos, expert panels and networking.

🎟️ If you want to join us, click on the link below to to snag one of the last few tickets!

For those who already have secured their spot, we can't wait to see you!

PROJECT SPOTLIGHT

Perfect harmony

Completed last summer, Harmony Commons Student Residence at the University of Toronto Scarborough is Canada’s largest Passive House-certified building and the world’s largest certified dormitory. Designed by Handel Architects, the 24,620-square-metre facility meets strict energy efficiency and sustainability standards.

PROJECT UPDATES

Cavendish Boardwalk getting expansion

Yondr breaks ground on 27MW data center

Thunder Bay cardiovascular surgery unit work to start this year

Halifax council scraps overhaul of Windsor Street exchange

Calgary Zoo plans $15M expansion

Get our full breakdown of the week’s project updates in the link below

WHAT WE’RE TALKING ABOUT

WATCH: 🍺 Crack open an ice cold SiteBrew

READ: 🎨 Back to the drawing board for Vancouver Art Gallery 

WATCH: 🗑️ Montreal woman collects cans for home down payment

READ: ✈️ New drone regulations benefit remote work

WATCH: 🦌 The hidden engineering of wildlife crossings

TOP CONSTRUCTION JOBS

🔥 Check out all roles up for grabs right now at SiteNews Jobs or put your job post in front of tens of thousands of construction professionals here. Hurry up before our free trial ends!

Struggling to fill a role? send us an email at [email protected] to connect with one of our specialized recruitment experts.

ADVERTISE WITH SITENEWS

Get your message and brand in front of Canada’s construction leaders and decision-makers by advertising in our newsletter. Learn how to partner with us here.

Here’s to a great rest of the week!

Disclaimer: SiteNews is an independently-operated news website. Views expressed are that of the editorial team and are based on publicly available information unless otherwise noted through sponsored content.