As of September 8, 2026, the U.S.-Canada trade dispute had moved into another round of tariff measures. The U.S. had imposed additional 50% tariffs on certain Canadian goods, with the latest measures taking effect on August 19. Canada had also imposed similar tariffs on certain U.S. goods in response. For construction projects, these measures can increase the landed cost of imported materials and equipment, while making tariff classification and country-of-origin considerations more important during procurement. For U.S. construction and architectural projects, the relevant concern is how these tariffs could affect the cost, availability, and procurement timelines of materials and equipment sourced from Canada.
Tariff uncertainty is adding pressure to the U.S. construction industry, affecting material costs, sourcing, and project timelines. The Associated General Contractors of America reported that prices for inputs to new nonresidential construction were 7.1% higher in June 2026 than in June 2025, with aluminum mill shapes up 52.4%, copper and brass mill shapes 26%, and steel mill products 16.9%.
Tariff uncertainty is pressuring the U.S. construction industry, affecting material costs, sourcing, and project timelines. The Associated General Contractors of America reported that construction input prices were 8.9% higher in August 2026 than a year earlier, reflecting continued pressure on construction materials and equipment costs.
For construction teams, the broader concern is what those changes mean for procurement. A material may still be technically suitable, but its availability, price, origin, or delivery timeline can change before the project reaches construction.
That is where the trade dispute becomes an MEP engineering and project-delivery issue.
Canada is a major source of steel, aluminum, copper, and lumber for the U.S. market. These materials can feed directly into construction supply chains, from structural components and building materials to electrical systems and other MEP requirements.
Under U.S. Section 232 tariffs, certain steel products such as flat-rolled steel, steel plates, bars, and structural steel, as well as aluminum products including aluminum sheets, plates, bars, and extrusions, are subject to additional duties.
For U.S. construction projects, these tariffs can affect material costs, sourcing decisions, equipment pricing, and procurement timelines.
Tariffs can increase the delivered cost of materials and equipment, but the project impact does not necessarily stop at the purchase price. A higher equipment cost can affect the project budget, while a higher-cost material may lead the team to evaluate alternative products or suppliers.
Delays in identifying and approving alternatives can also extend the project timeline. For financed projects, a longer schedule can increase interest costs beyond what was originally budgeted.
For architects, this can create additional coordination when a material or equipment selection needs to change after the design has already been developed.
A product can remain technically available while becoming significantly harder to procure within the required project timeline. For long-lead HVAC, electrical, plumbing, or other specialized equipment, procurement delays can affect construction sequencing and ultimately the project schedule.
This makes equipment availability something worth considering during design, rather than only after construction procurement begins.
When a specified product is unavailable or no longer commercially viable, the replacement may not be a direct one-for-one swap. A different product can have different dimensions, capacities, electrical requirements, connections, controls, clearances, or installation requirements.
For architects, that can affect floor plans, equipment rooms, ceiling heights, roof layouts, shafts, service areas, and coordination with structure. The substitution may therefore require both architectural and MEP review before it can be accepted.
A design based on one specific equipment model or material can become difficult to maintain when supply conditions change. Designing with approved alternatives in mind can make it easier to adapt to procurement changes without redesigning the project.
This is particularly important for franchise and multi-location projects, where one equipment substitution can otherwise be repeated across multiple sites.
To reduce this risk, project teams can identify suitable alternatives early, review their space, utility, performance, and code requirements, and coordinate approved options before procurement begins.
Tariffs can therefore create impacts beyond the initial purchase price, including procurement, redesign, and project-schedule risks.
When specified MEP equipment becomes unavailable or more expensive, a substitute may need to be evaluated. Even when the replacement serves the same purpose, it may have different technical requirements.
This can affect:
A substitution may therefore require coordination across MEP disciplines, architecture, and structure before it can be approved.
The key is to evaluate viable alternatives early so procurement changes do not trigger avoidable redesign later.
The cost of everything that happens after the specified product can no longer be used as planned can be much harder to quantify.
Project teams cannot control tariff policy. They can control how early they identify their exposure and how much flexibility they build into the design and procurement process.
A few practical steps can help.
Review major HVAC, electrical, and other high-value or long-lead materials before the design is locked.
Look at availability, manufacturing location, lead time, potential supply constraints, and whether the specified product has realistic alternatives.
For critical equipment and materials, identify realistic alternatives early.
The question should not simply be, “Is there another product?”
It should be:
Can another product perform the same function without creating major changes to the design?
An alternative that appears suitable from a procurement perspective may have different dimensions, capacities, electrical requirements, connections, clearances, or installation requirements.
Procurement, architecture, and engineering decisions are closely connected when equipment is expensive, specialized, or long-lead.
Engineering and design teams need to understand what can actually be sourced, while procurement teams need to understand which technical and design requirements cannot be compromised.
This coordination should happen before a substitution becomes an urgent field decision.
This becomes especially important for franchise and multi-location projects.
A prototype can standardize systems and speed up future designs, but it should not depend so heavily on one exact equipment model that a supply disruption forces redesign across every location.
Where practical, designs can allow for approved equipment alternatives without compromising performance, code compliance, or coordination.
The right response depends on the type of project.
| Project situation | What to consider |
|---|---|
| New construction | Equipment availability before design lock |
| Retrofit | Alternative equipment compatibility with existing conditions |
| Franchise rollout | Standardization with enough equipment flexibility |
| Long-lead project | Impact of equipment substitutions across standardized designs |
| Budget-sensitive project | Total project impact by Equipment cost, installation cost, schedule impact, and financing costs |
The goal is to select equipment that is technically suitable, commercially available, and adaptable to project-specific conditions, reducing unnecessary redesign when procurement changes.
Our team of MEP engineering experts can help project teams navigate equipment changes by evaluating suitable equipment based on project requirements, available space, utility conditions, and applicable codes. When the preferred equipment is unavailable or becomes cost-prohibitive, our experts can assess multiple alternatives and determine how each option would affect the overall design.
The team also stays in regular contact with equipment vendors and suppliers to track availability, lead times, and supply chain changes. This is particularly valuable for franchise and multi-location projects, where equipment selections need to work across different utilities, building conditions, climates, and local requirements. By identifying potential equipment issues early, our experts can help teams evaluate alternatives and make informed procurement decisions before they affect the project schedule. Franchise engineering services