New tariffs on Canadian goods entering the U.S. were among the latest round of levies unveiled by the White House on April 2. The effects of these tariffs, particularly on commercial real estate in North America, could be extensive. According to a recent analysis by Morningstar DBRS, Canadian industrial property owners and operators are likely to experience the most immediate impacts.
The Canadian industrial real estate sector faces greater concerns due to its higher exposure to U.S. markets, especially when compared to Europe, which has experienced fewer U.S. tariffs to date. The tariffs are affecting various types of industrial real estate, including manufacturing plants that produce steel, aluminum, auto parts, and other components destined for transport across the U.S. border. Additionally, logistical hubs, warehouses, and other facilities that support industrial operations are also impacted, according to sources in the insurance industry.
This article from Canadian Underwriter outlines the challenges and some ways to mitigate that risk.
