Digging In Podcast: Economist Jock Finlayson breaks down tariffs, Trump and trade
Are builders and officials using the right strategies to deal with the U.S.?
Key Takeaways:
- Finlayson says it’s not just tariffs hurting Canada—it’s the uncertainty. It’s freezing investment, stalling exports, and could tip the economy into recession.
- He warns that Canada’s counter-tariffs are raising the cost of construction and urges a smarter response that doesn’t make building even more expensive.
- Trump-era tensions have jolted Canadian leaders into prioritizing nation-building, speeding up project approvals, and focusing on infrastructure investment.
The Whole Story:
In the debut episode of Digging In, a new SiteNews podcast, ICBA Chief Economist Jock Finlayson joined editor Russell Hixson to break down how economic uncertainty—fueled by trade tensions and shifting geopolitical winds—is impacting Canada’s construction sector.
Watch the full conversation on YouTube here:
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During the discussion, Finlayson explained that the biggest challenge isn’t tariffs themselves, but the lingering fog they create.
“The uncertainty is really hurting investment, and even consumer confidence,” he noted.
While Canada has avoided blanket tariffs so far, key sectors like steel and autos are already feeling the pinch—particularly in Ontario. But when it comes to how we fight back, Finlayson was critical of Canada’s retaliatory tariffs, especially those affecting construction inputs.
“We shouldn’t be retaliating in ways that raise the cost of building things,” he said, urging policymakers to avoid moves that would worsen affordability challenges.
He also pointed to an unexpected upside: renewed interest in nation-building projects.
“Trump has kind of shocked Canada out of its complacency,” Finlayson said, adding that Ottawa and the provinces are now showing more urgency around infrastructure, housing, and trade-enabling projects.
But the long-term economic dependency on the U.S. remains. “We don’t really have an alternative,” he warned. “We’re not going to transform the Canadian economy into something no longer heavily dependent on the U.S.”
Finlayson flagged two emerging headwinds for construction: a planned reduction in immigration, which could cool demand, and climate policy uncertainty—especially if the U.S. under a second Trump administration abandons its emissions agenda. Canada, he said, risks losing investment unless it reassesses how far ahead of the U.S. it wants to be on climate targets.
His advice for construction leaders? Stay engaged, speak up, and push for smarter policy.
“Now is the time to step up on big projects and cut the time it takes to get things built,” he said.
