Impacts of Trump Tariffs on Canadian Residential Construction Sector

Retaliatory Canadian tariffs on construction materials would have substantial effects on the costs of home construction. Canada imports some $3.5B in glass and glass products, $3.1B in major appliances, $2.2B in hardware, and about $1B in ceramic tile and products. Of those products, only appliances are being targeted by Canada in the first phase of tariffs. But the second phase of tariffs, slated to come into place after 21 days, currently includes steel and aluminum. Canada exports over $20 billion in steel and aluminum to the U.S. annually, but also imports some $17 billion on steel and aluminum. Tariffs will increase costs on both sides of the border. It is worth noting that CHBA’s counterparts in the U.S., the National Association of Home Builders, are also actively advocating against tariffs on construction goods.

All Canadian importers in the residential supply chain will need to look at alternatives to U.S. goods upon which Canadian countervailing tariffs are placed, seeking sources in Canada and from other countries. This will take time, and products will still likely be more expensive than the U.S. goods prior to tariffs, though they may be less than the 25% increase. All efforts to “buy Canadian” where possible will also serve to bolster our economy now and into the future.