U.S. tariff uncertainty continues to threaten condo board budgets. Here we look at the most troublesome tariff challenges condo boards will likely face in 2026 with procurement strategies to help overcome them.

Retaliatory tariffs

Canada’s retaliatory tariffs increase import costs on American goods required for condo renovations. The importers who bring goods and materials north pay the tariffs and pass them on to the customer by raising their prices. Therein lies the problem.

Cancel or negotiate

Existing orders or vendor relationships might offer opportunities to negotiate. For example, a supplier might be willing to split the added costs of tariff burdens to avoid a full-out cancellation. The risk of cancellation might incentivize vendors to negotiate new terms. Businesses need to consider which costs them more in the long run, lost margins or lost sales and market share. Boards can also ask suppliers if they can recommend alternative products not impacted by tariffs.

Going Canadian

If your board has traditionally relied on U.S. suppliers, shopping Canadian might be the better solution. Although initially it might seem the costs are higher, you have to calculate the savings realized by paying in Canadian dollars. The challenge is finding Canadian suppliers who can meet the demands of large orders. There’s also the possibility Canadian suppliers have raised their prices to cover the costs of American materials used to manufacture their products.

Going global

Boards can also explore global suppliers, specifically India and China. These countries manufacture a wide range of materials such as wallpaper, flooring, carpets, etc. Quality is a major consideration, as is the route for delivery. For example, if they have a U.S. warehouse, will shipments via the U.S. pose an issue? You might also find shipping costs negate your savings. 

Delaying vs. expediting projects

Boards might consider delaying some projects until tariff negotiations are finalized to avoid paying additional tariff costs. While a wait-and-see strategy works for projects such as replacing carpeting in hallways, it is risky for major system replacements with a high chance of collateral damage. 

On the other hand, some boards actually took a proactive approach and pre-purchased HVAC systems in anticipation of tariffs. While this worked for those boards, the result was a drain on existing stock. Inventory shortages force prices upwards and can also defer urgent replacements. 

How to mitigate tariff impact

There are some basic steps condo corporations can take to help mitigate the cost implications of tariffs, including

• Budget reviews to account for fluctuating costs 
• Seeking long-term contracts before prices are impacted
• Reallocating orders to find the best price 
• Refocusing efforts to reduce operating costs to help compensate for tariff expenses
• Working with a property manager to track trade policies and renegotiate contracts and orders

There is a chance tariffs could actually lower costs as more materials and products become available in Canada. If this is the case, affordable Canadian materials can help keep pricing competitive with our American counterparts. The challenge is compensating for fluctuations that impact your valuations and budget allotments for upcoming projects.

The condo experts at CPO Management Inc., a full-service property management company in Toronto and the GTA, have the experience you need to implement condo board budget modifications and cost-saving strategies to overcome tariff challenges.  Reach out to us today to learn more about our condo services.