The impact of the new customs tariffs on construction costs in Quebec, and why your reserve fund needs updating
The tariffs recently imposed by the United States, notably a 25% surcharge on steel and aluminum, are having significant repercussions on Quebec’s construction industry. These measures are driving up material costs, directly affecting the budgets of projects already under way and those still to come.
Rising costs for construction materials
The 25% tariffs on steel and aluminum imported into the United States, in force since March 12, 2025, led Canada to impose comparable counter-tariffs on certain American products. These measures have caused a marked increase in the price of essential construction materials, with a direct effect on project budgets.
What this means for condominiums and reserve funds
This rise in costs has direct consequences for condominiums. Condo fees are set to increase, particularly because of the legal obligations arising from Bill 16, which requires larger contributions to reserve funds. Condominium syndicates must now also have reserve fund studies carried out by professionals, in order to estimate the cost of major repairs and of replacing the common portions.
Why update your reserve fund?
It is essential that condominiums adjust their reserve fund contributions to reflect the real cost of the work ahead. Settling for the legal minimum of 5% of common expenses can leave the fund well short of what major expenditures demand, leading to unexpected special assessments.
Our commitment to you
In the face of these challenges, our team of professionals is here to:
Carry out thorough studies of your reserve fund, in line with legal requirements.
Update your price lists to reflect movements in the market.
Provide tailored advice to secure your condominium’s financial future.
Contact us today to arrange a consultation and keep your reserve fund managed effectively as the market shifts.