In anticipation of U.S. President Donald Trump’s potential imposition of significant tariffs on Canadian goods, Housing Minister Nathaniel Erskine-Smith indicates that the expense of constructing homes will rise, despite the urgent need for more housing inventory. Erskine-Smith mentioned in an interview on CBC’s The House that the government is aware of the situation and is considering retaliatory measures.
Canada is facing the possibility of a trade war with the United States, which may commence early next month. A 25 percent tariff on the majority of Canadian and Mexican goods was delayed until March 4. The federal government has pledged to implement counter-tariffs if Trump proceeds with his threats. In February, it released a list of American goods that would be targeted in response, such as kitchen and bathroom appliances, and plastic building materials.
Erskine-Smith highlighted that Canada’s primary challenge is defending against Trump’s tariffs, followed by the significant challenge of constructing as many homes as possible. The Canadian Home Builders’ Association (CHBA), in a recent statement condemning Trump’s tariffs, stated that counter-tariffs on construction products and materials would negatively impact an industry already struggling in many parts of Canada.
Brad Carr, CEO of Mattamy Homes Canada, expressed concerns about the potential impact of tariffs on the Canadian economy and the housing sector. He mentioned that the uncertainty surrounding the impending trade war is casting a shadow over the housing industry. If the cost of home construction rises due to increased prices of imported items from the U.S., Carr indicated that his company would need to pass on those costs to buyers. He emphasized the importance of finding new suppliers and exploring cost-saving strategies.
The CHBA mentioned that Canadian importers in the residential supply chain will need to seek alternatives to U.S. goods once Canada imposes its counter-tariffs. Carr emphasized the need for solutions before the situation escalates, highlighting the current period of uncertainty and the complexities that need to be addressed. He stressed the importance of resolving the trade war as a crucial step forward.
