Canada-U.S. trade war will raise the cost of building a home, housing minister says
As tensions rise between Canada and the United States over potential tariffs on Canadian goods, Housing Minister Nathaniel Erskine-Smith warns that the cost of homebuilding is expected to increase. Despite the urgent need for more housing stock in Canada, the looming trade war with the U.S. poses a significant challenge.
Erskine-Smith emphasized the government’s awareness of the concerns surrounding the tariffs and the potential impact on the housing market. With the threat of a 25 per cent tariff on Canadian and Mexican goods looming, the federal government has prepared counter-tariffs targeting American products like kitchen appliances and building materials.
The Canadian Home Builders’ Association (CHBA) has condemned Trump’s tariffs, stating that counter-tariffs on construction materials would further strain an already struggling industry. CEO of Mattamy Homes Canada, Brad Carr, expressed concern over the uncertainty created by the trade war, noting that higher costs for imported materials could be passed on to homebuyers.
Carr acknowledged the need to find alternative suppliers and cost-saving measures to mitigate the impact of potential tariffs on home prices. The CHBA suggested that Canadian importers explore non-U.S. options to reduce the impact of counter-tariffs on construction materials.
As the trade war threatens to escalate, Carr stressed the importance of resolving the conflict to avoid further disruptions to the housing market. The uncertainty surrounding the tariffs has left many in the industry anxious about the future, with hopes for a swift resolution to prevent additional challenges for homebuilders and consumers alike.
