Dear TIAC Members,

We are writing to inform you about upcoming tariffs between Canada and the United States and to urge you to take action. If you are engaging with your local government on this issue, please feel free to include TIAC’s Director of Industry Affairs, Tristan Bertram (tristan.bertram@tiac.ca), in your communications. Tristan can provide additional support and ensure that your concerns are aligned with TIAC’s broader advocacy efforts.

The Situation
As you know, on February 1, 2025, the United States imposed tariffs on Canadian imports, including:

  1. 10% on Canadian energy
  2. 25% on all other goods

In response, the Canadian government is imposing reciprocal tariffs of 25% on up to $30 billion worth of US imports. The first round of tariffs began on March 4, 2025. A second round of tariffs, potentially worth $125 billion, is also under consideration, set to start on April 2.

Why These Measures?
These countermeasures are designed to encourage the United States to lift the tariffs, which Canada considers unjustified and detrimental to bilateral trade relations.

Act Now: Public Consultation Ends April 2
The Canadian government is seeking input from businesses and citizens like you to assess the impact of the proposed measures. It is vital that our industry is heard! The consultation period ends on April 2, 2025.

How You Can Participate
We strongly encourage you to participate in the public consultation to ensure your voice is heard. Your participation is essential to ensure that products not available in Canada are exempt from the tariffs set to begin on April 2. The more of us who mobilize, the stronger our voice will be!

Key Actions & Resources:

  1. Express Your Opinion: Complete the online consultation form before April 2. https://forms-formulaires.alpha.canada.ca/en/id/cm7upmkx9008rx268zhy9l6pj
  2. Requesting Remission of Tariffs: Learn about requesting remission of tariffs that apply on certain goods from the US. https://www.canada.ca/en/department-finance/programs/international-trade-finance-policy/process-requesting-remission-tariffs-that-apply-on-certain-goods-us.html
  3. Canada’s Response to US Tariffs on Canadian Goods: Review Canada’s official response. httpsUS/www.canada.ca/en/department-finance/programs/international-trade-finance-policy/canadas-response-us-tariffs.html
  4. Canada’s Notice of Intent: Read the Notice of Intent to Impose Countermeasures. https://www.canada.ca/en/department-finance/programs/consultations/2025/notice-intent-impose-countermeasures-response-united-states-tariffs-on-canadian-goods.html
  5. Canada-US Engagement: Stay up-to-date on Canada-US relations. https://international.canada.ca/en/global-affairs/campaigns/canada-us-engagement
  6. Tariff Information: Consult the CBSA for tariff-related information. https://cbsa-asfc.gc.ca/trade-commerce/tariff-tarif/menu-eng.html

Example Online Consultation Submission:
Consider including language like the following in your submission, adjusting it to fit your specific situation:

“As a [manufacturer, distributor, or contractor] in the mechanical insulation industry, I am deeply concerned about the impact of tariffs between the US and Canada. While countermeasures may be necessary, tariffs on building materials, especially mechanical insulation products, will disrupt essential material supply chains and negatively impact businesses on both sides of the border.

For Canadian companies, tariffs on US goods will increase costs—especially for products like fiberglass pipe insulation and PVC coverings, which do not have Canadian alternatives that meet National Building Code (NBC) standards. These increased costs will have a detrimental effect throughout the supply chain, impacting manufacturers, distributors, and contractors. Contractors, in particular, are expected to face:

      1. Eroded Profit Margins: Fixed-price contracts will prevent passing increased costs onto clients.
      2. Project Delays: Supply chain disruptions and material shortages will slow construction timelines.
      3. Reduced Competitiveness: Higher costs will make Canadian firms less competitive.

All building materials—including mechanical insulation and related products—should be exempt from tariffs to avoid unnecessary cost increases and project delays. The construction industry relies on a stable supply of materials to meet safety, energy efficiency, and sustainability standards. If mechanical insulation materials are not exempt, the result will be:

      1. Increased Carbon Emissions: Supply shortages will delay mechanical insulation projects, leaving mechanical and industrial systems uninsulated. This will lead to higher fuel consumption and increased carbon emissions.
      2. Higher Construction Costs: Rising material prices will drive up overall project costs, affecting industrial, institutional, commercial, and residential high-rise developments.
      3. National Building Code Revisions: Since Canadian alternatives are unavailable, sourcing materials from other markets will require revisions to the National Building Codes to allow compliance with alternative materials.
      4. Delays in Critical Projects: Supply shortages and difficulties sourcing alternative materials could delay essential infrastructure projects, including hospitals, schools, commercial buildings, and industrial facilities.
      5. Strained US-Canada Business Relations: Tariffs will create challenges for businesses on both sides of the border, reducing economic cooperation and competitiveness.

Exempting all building materials from tariffs is crucial to maintaining Canada’s resilient, competitive, and cost-effective construction sector.”

Relevant HS Codes:
The following HS codes relate to materials impacted in our industry:

  • 7019.90
  • 7019.80
  • 4009.11
  • 3506.91
  • 4008.11
  • 3917.32
  • 3921.11
  • 6806.10
  • 7609.00
  • 3917.40

TIAC’s Ongoing Efforts
TIAC is actively monitoring this rapidly evolving situation and will continue to inform our members of any significant changes. Our Board of Directors is currently drafting plans to further engage with the Canadian government and advocate for solutions that will benefit our industry. More information regarding TIAC’s plan will be shared shortly.

Disclaimer: The information contained in this email is accurate to the best of our knowledge as of the date of this email. Given the dynamic nature of this situation, details are subject to change. We encourage you to consult the official government resources provided for the most up-to-date information.

We urge you to take action on this critical issue. Your participation can make a difference!

Sincerely,

Rob Bertram
President
Thermal Insulation Association of Canada