Tariffs run up cost of drywall in Western Canada

Drywall prices across Western Canada have shot through the roof after the federal government imposed preliminary antidumping tariffs of up to 276 per cent on gypsum board products imported from the United States.

Builders and suppliers fear the ruling could disrupt the supply of the boarding used in walls and ceilings and threaten the completion of residential, commercial and public projects. The tariffs also risk bankrupting contractors who operate under fixed-priced contracts.

A spokesman for Canada’s largest independent gypsum supplier said Tuesday the tariffs undermine the stability of the industry and could impact the rebuilding efforts in Fort McMurray, where thousands of buildings were destroyed by fire earlier this year.

“If we can’t get enough material to ship into the province of Alberta then as Fort McMurray stands, it would be affected like everybody else,” WSB Titan CEO Doug Skrepnek said in a telephone interview from Vaughan, Ont.

He said the surprise decision on tariffs hammered the industry.

“On Sept. 6 we went from understanding there may be a tariff to there is a tariff and that tariff will add between 50 and 60 per cent, depending upon the market, price increase to our customers,” said Skrepnek, whose company supplies one in every six sheets of drywall used in Canada. The Canada Border Services Agency imposed preliminary tariffs last Tuesday on U.S. gypsum board imported into Canada for use in British Columbia, Alberta, Saskatchewan, Manitoba and the Yukon and Northwest Territories.

A CBSA statement issued Tuesday said Canadian producers have legislated rights to seek protection from dumped imports by way of duties.

“Following a complaint filed on April 18, 2016, by CertainTeed Gypsum Canada Inc. of Mississauga, Ont., the CBSA initiated an investigation on June 6, 2016,” the statement says.

“The CBSA made a preliminary determination of dumping on September 6, 2016 and provisional duties were imposed at that time to offset the dumping.”

No one from CertainTeed Gypsum Canada was available for comment before press time.