‘You can’t plan for that': Developers say tariffs could put large construction projects on hold

Business leaders are pumping the breaks on projects in the face of economic uncertainty, CTV London’s Gerry Dewan has more.

It’s the kind of economic volatility that could put large construction projects in London on hold.

London Development Institute LDI Executive Director Mike Wallace says that’s the message he’s getting from local developer, “Based on the discussion I had with a number of my members this week, they are pausing any big projects that they have going at least for a few months.”

The LDI advises and advocates for a majority of London developers. Wallace says the threats of US tariffs creates too much uncertainty, “You can’t go forward with spending money on when you have no idea what it’s going to cost you. You can’t plan for that.”

It’s expected York Developments will begin initial construction on a new twin tower development at the corner of Ridout and King within a couple of weeks.

One of the towers is projected to be 53 storeys, making it the one of the tallest structures between the GTA and Calgary. What’s uncertain now is how far the construction will go.

“You only pay for an increased price related to the tariff itself,” argued Mike Carter, who is Chief Executive Officer of the London and District Construction Association representing the regions trades.

Carter agreed that there may be additional costs to construction projects, but pointed out that a 25 per cent tariff doesn’t mean there should be a 25 per cent increase in the cost of a project.

He stressed that the biggest impact on the local construction industry would primarily come from items targeted with Canadian counter-tariffs. He noted that not all aspects of construction are subject to tariffs, “Most of our construction projects are probably 30 to 40 per cent labour. So, no tariff impact there - and I know of all the materials and costs, let’s call it the other 60per cent, only a portion of that is actually subject to tariffs. So, you know, there’s a 5 per ecnt increase in total project cost... maybe more, maybe less.”

Carter also believes many public infrastructure projects will go ahead, and some may be accelerated to bolster the economy. He also believes new economic models will be developed to lessen reliance on US products.