Building material suppliers say tariffs are rattling customers, putting projects in jeopardy

With spring construction season approaching, some building supply centres say customers are scuttling home improvement projects because they're worried about tariffs.

"There is still business happening, but it is a noticeable difference," said Keith Nordal, an owner at the Home Hardware Home Building Centre in Regina.

Nordal said business was looking promising for the upcoming construction season, with lots of quotes in March for deck builds, garages and fences. But in the past couple of weeks, some of his quoted projects have stalled.

"We've definitely seen a bit of a dip," Nordal said.

"Some of the people … haven't come in for their follow up meeting."

Nordal said customers he's speaking with are worried about what U.S. President Donald Trump's tariffs and the ensuing trade war mean for the economy, building material prices and their own jobs.

Trump has imposed a 25-per-cent tariff on all goods not compliant with the Canada-United States-Mexico Agreement (CUSMA). Non-compliant energy and potash are tariffed 10 per cent.

In turn, Canada imposed a 25-per-cent tariff on non-CUSMA compliant American goods entering this country.

The result has been confusion and fear for business owners and customers.

Industry associations say it's too early to know the extent of the impact on Saskatchewan's construction and renovation sector, but the uncertainty is already impacting jobs.

"We're ramping up to construction season and there's not as much confidence as there would have been prior to all this tariff talk. It's certainly affecting the labour market," said Shannon Friesen, president of the Construction Association of Saskatchewan, which represents commercial builders.

"There's fear. You can't overstate that."

Friesen said she's worried that if the trade war continues, companies will start rethinking planned builds and pause development projects.

"It feels a bit like a game. It just feels sometimes like we're puppets being yanked on a string."

There's fear. You can't overstate that.- Shannon Friesen, Construction Association of Saskatchewan

Ryan Wilson, an owner of Wood Country Building Services in McLean, about 42 kilometres east of Regina, said he's already had to deal with an unplanned price increase due to tariffs.

Earlier this year, Wilson placed an order for overhead doors from an American supplier.

After the tariffs were announced, the supplier let Wilson know the bill was going to be a lot more than originally estimated.

"Some were over $800 difference."

While Wilson was able to negotiate the price down, he said that kind of uncertainty makes people scared to start building projects.

He suspects some people are holding off on projects because they're worried about their own jobs if tariffs continue.

"We do a lot of business with farmers, so this 100-per-cent tariff on canola is not going to help our industry at all either. Maybe that farmer might not build that farm building because he's making less money on canola," Wilson said.

"Those are the kind of things that worry us."

Back in Regina, local landscaper Barclay Krause said he's not seeing any impact on his business — yet.

"As it stands right now, this is looking to be a record year for us."

Krause said his customers are looking for high-end landscaping and tend to be more recession resistant, but he's heard from other landscapers who aren't as busy.

"The reality is at any point things could take a turn for the worse."

Stu Niebergall, president and CEO of the Regina and Region Homebuilders' Association, said his members are feeling the same uncertainty, but it hasn't translated into any cancelled builds that he's aware of.

"It would be hard to imagine as we get through this process that anything is going to be cheaper in the future. So this spring, summer, might actually be one of the best times for people to move on those projects."