The Trump administration continues to expand its use of tariffs as a tool to strengthen domestic manufacturing, encourage investment in U.S. production, and address perceived national security concerns. On July 20, President Donald Trump announced additional trade actions—new tariffs on certain Canadian imports and incentives for domestic aluminum production—that build on a series of Section 232 tariff actions affecting steel, aluminum, and copper over the past year.
While these latest announcements are primarily directed at manufacturers and importers, they are also relevant to electrical contractors, whose projects depend on stable pricing and reliable supplies of construction materials and electrical equipment.
New Tariffs on Canadian Imports
President Trump signed three proclamations imposing an additional 50% tariff on certain Canadian imports under Section 338 of the Tariff Act of 1930. According to the Office of the U.S. Trade Representative (USTR), the measures affect nearly $20 billion in imports and are scheduled to take effect on Aug. 19, 2026.
The new tariffs cover a variety of products, including certain cement products used throughout the construction industry. Steel, aluminum, and copper are excluded because they are already subject to separate Section 232 tariffs.
The administration said the action responds to what it considers Canada’s continued discriminatory trade practices and is intended to encourage fairer trade with the United States.
Incentives for U.S. Aluminum Production
In a separate proclamation, President Trump directed the Department of Commerce to establish a new incentive program encouraging companies to build, expand, or modernize aluminum smelters in the United States.
Companies with approved domestic investment plans will be eligible to import a corresponding quantity of primary aluminum at one-half of the otherwise applicable Section 232 tariff rate. The reduced tariff is intended to offset some of the costs associated with expanding domestic aluminum production while increasing long-term U.S. manufacturing capacity. Companies that fail to complete their investments could lose the benefit and be required to repay previously waived duties.
Part of a Broader Tariff Strategy
The July announcements do not stand alone.
Since returning to office, the Trump administration has steadily expanded its Section 232 tariff program governing steel, aluminum, and copper imports. Earlier this year, the administration increased tariffs on many metal products to 50% while revising how tariffs apply to downstream manufactured products. In June, the administration also adjusted tariff treatment for certain construction equipment, industrial machinery, and agricultural equipment to reduce costs for manufacturers while maintaining strong protections for domestic metal producers.
Taken together, these actions signal that tariffs remain a central component of the administration’s broader manufacturing and industrial policy.
What It Means for Electrical Contractors
Although electrical contractors are not the direct target of these trade actions, they often experience the downstream effects.
Many products commonly used on electrical construction projects—including conduit, cable tray, switchgear enclosures, lighting products, transformers, wire and cable components, structural supports, and fasteners—contain significant amounts of steel, aluminum, or copper. Even when finished products are manufactured domestically, imported raw materials and components can influence pricing and availability.
Contractors may experience:
- Higher material costs as manufacturers pass through increased import costs.
- Greater price volatility for products containing steel, aluminum, copper, or cement.
- Longer procurement timelines if suppliers adjust sourcing strategies.
- Increased pressure to include material escalation provisions in contracts and carefully monitor procurement schedules.
For contractors bidding fixed-price projects, continued tariff changes may create additional uncertainty between bid submission and material procurement. Owners and contractors alike are increasingly evaluating escalation clauses, early purchasing strategies, and supplier diversification to better manage these risks.
Looking Ahead
The administration has made clear that it intends to continue using tariffs to encourage domestic manufacturing investment while protecting industries it considers vital to national security.
For IEC members, the most significant impacts may not come from any single proclamation but from the cumulative effect of multiple trade actions across metals, construction materials, and manufactured products. As manufacturers adjust supply chains and pricing, electrical contractors should continue monitoring market conditions, engaging suppliers early, and factoring potential material volatility into project planning and contract negotiations.
IEC will continue tracking federal trade policy developments and provide updates as additional guidance is issued by the Departments of Commerce and Homeland Security and U.S. Customs and Border Protection.