Alternative non-US material sources are being sought for the Calgary Event Centre project, as uncertainty around future tariffs is putting some projects in flux.
With the threat of 25 per cent tariffs on Canadian goods, and potential reciprocal tariffs looming, the City of Calgary said they’re actively monitoring the situation and how it might impact ongoing infrastructure projects.
US President Donald Trump has also called for a 25 per cent on steel and aluminum imports, hitting the automotive, construction and energy industries.
The Scotia Place Project Team (Calgary Event Centre) said they’re taking steps to address any material challenges on the $1.25 billion project. Excavation on the project is ongoing with main construction expected to start later this year.
“The Scotia Place Project Team has taken proactive measures to source materials from outside of the U.S., as we anticipate impacts related to price fluctuations and potential supply chain delays,” read an email response from the City of Calgary’s supply management team.
“We remain resilient and are prepared to address challenges that may arise from U.S. tariffs and any reciprocal tariffs that Canada may implement.”
The City of Calgary has several projects on the go, and in the construction queue, including Arts Commons Transformation, Olympic Plaza, the Green Line, and water infrastructure improvements.
Ward 7 Coun. Terry Wong said that he’s concerned about the potential increase in cost for projects given the potential impact of tariffs.
“We are concerned, of course, the cost of construction materials, particularly steel pipes,” he said.
“Ideally, I’d like to be able to source the material locally within Canada, and keep the cost and the inflation, the exchange rate, in check. But not all steel is the same steel.”
Tariffs are out of Calgary’s control: Coun. Sharp
The City of Calgary said that they will continue to provide updates as more information becomes available.
“We remain committed to securing the best value for public funds and continuing to deliver world-class services to Calgarians,” they wrote in the email response.
Ward 1 Coun. Sonya Sharp said that she thinks city administration is doing a good job at keeping them in the loop on what’s happening with procurement on large municipal projects.
“This is all out of our control, right?” Sharp told reporters.
In the meantime, Sharp said it’s important for Calgarians to support local industries, both large and small. She also said citizens must let their elected officials know how they feel about the issue.
“I would implore every Calgarian, and I will, myself, be speaking to my Members of Parliament and saying, ‘What are you doing to protect our country,’ and as we move forward on this, because it can affect your economy eventually,” she said.
“But on a small scale level, I would say, if you’re building a house or you’re buying local, start searching those people that actually have their businesses here.”
Earlier this month, the Calgary Construction Association encouraged public and private entities with contracts out for tender to provide tariff exemptions to bidders so they don’t have to absorb the tariff impact up front.
They also want project teams to engage with contractors and suppliers directly to gather real-time data.
“Understanding market conditions firsthand will inform sound decision-making and project planning,” they wrote in a Feb. 3 media release.
