July 29th, 2026
Subject: A new round of tariffs brings no change to Collective’s pricing for US customers
To our valued present and future customers,
As we launch into our busiest season of the year, we’re conscious of the concern that some of our US clients may have about tariffs and other general inflationary price pressures. We understand your apprehension about the possible impact on the cost of working with a Canadian prefabrication company – both for projects under contract yet to be delivered, and for projects planning for 2027 and beyond.
We write this letter with a touch of deja vu, having written a similar memo a year ago addressing the headlines about significant tariffs on “all Canadian goods sent to the US”. Today we find ourselves with current news of “50% tariffs on Canadian goods,” and we wish to again qualify the sensationalist headlines with facts.
We use prefabrication to create the highest quality buildings not just because we’re idealists, but because skilled labor shortages mean that building on site is too slow, expensive, and risky. We built our company to address these risks by offering more predictability in terms of cost, timeline, and quality. We deeply value the relationships we have created with our US clients over the past several years, and look forward to continuing to bring competitive, high-value products and services to your projects.
As of the date of this letter, Collective Carpentry’s building enclosure panel packages are exempt from all tariffs under protections written in the US Mexico Canada Free Trade Agreement (USMCA), put into place during the current US President’s former administration. While there are tariffs of up to 14% on raw lumber coming from Canada to the US, there are currently no tariffs or added fees on the value-added wood systems we provide. The current administration has signaled an intention to renegotiate the USMCA; however, the current agreement is due to remain in place until 2032.
Further, the recent 50% tariffs announced on July 20th affect only Dairy, Alcohol, and Automobile products (even those covered under the USMCA) and will have no impact on Collective Carpentry’s prefabricated building envelope packaged shipped from our Canadian facility to your US jobsite.
To you, our client, we commit to keeping you informed of any price changes that do come into effect as economic realities evolve over the course of your design review process, prior to beginning fabrication, and through delivery. Communication and planning are our strengths, and we will continue to leverage them in navigating solutions to any potential cost increases that could impact your project. The primary suggestion we have is to encourage your project consultants to work efficiently through the prefabrication design review process so that we may purchase your materials, lock in your production pricing, and schedule your production
date.
To provide you with additional price security, Collective Carpentry has committed to covering 100% of any border-related tariffs up to a maximum of 5% of the total value of the prefabricated envelope package (not including installation, which doesn’t cross the border). For tariff rates above 5%, we are open to negotiating a solution that is amenable to both parties. Any other government-imposed taxes, fees, and other costs remain the responsibility of the Purchaser.
We appreciate your work, your collaboration, and your resilience, and appreciate the opportunity to bring the speed, efficiency, quality, experience, and exceptional craftsmanship of Collective Carpentry’s solutions to your project.
Sincerely,
Jan Pratschke, CEO
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