Canadian homebuilders are fearing a return to pandemic-era construction cost increases as the U.S. gets ready to slap steep tariffs on the country’s imports, with levies on steel and aluminum set to inflict serious damage on the industry.

After material shortages pushed up expenses during the global health crisis, developers say tariffs would pose a big problem – and hurt more than when U.S. President Donald Trump imposed levies on the two metals in 2018.

Tariffs on all Canadian imports are set to take effect Tuesday. While most goods face a 25-per-cent levy, energy products and critical minerals – including aluminum – are subject to a 10-per-cent tariff. Mr. Trump has also said Canadian steel and aluminum would be hit with 25-per-cent levies on March 12.