TAG Industrial Watch: September 5, 2026

In August, trade talks failed between the U.S. and Canada, resulting in the Trump administration levying a 25% tariff rate on specified auto imports, a 50% tariff rate on $20 billion worth of imports such as chemicals, food/beverages, and industrial equipment, and a 50% rate on steel and aluminum products. Canada immediately retaliated with 15%, 25%, and 50% tariff rates on hundreds of American-made products ranging from agricultural equipment and dairy products to appliances and machinery. Given that Canada is America’s second-largest trading partner behind Mexico, with $716 billion in bilateral trade in 2025, industrial landlords should take heed (U.S. Census Bureau). Whether you own a cold storage facility or your property is used to produce auto-related products, your property could be impacted. However, with industrial real estate prices still at record-high levels, today is a good time for owner-users to consider a sale-leaseback. By leveraging your property to generate capital, owner-users can sustain their business in the midst of tariff uncertainty, rising interest rates, and increasing production costs.
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