Update: The United States government has issued a temporary pause on tariffs until April 2, if incoming Canadian goods are deemed “compliant” with the Canada-U.S.-Mexico Agreement (CUSMA) on Trade. Canada will not enact a second round of proposed tariffs as long as the U.S. continues to honour this pledge.
Builders across Ontario are warning that the newly imposed tariffs will make building materials more expensive and raise prices on new homes in both Canada and the United States.
Richard Lyall, president of the Residential Construction Council of Ontario (RESCON), said the levies on materials will ultimately be passed onto consumers, accelerating the slowdown in residential construction activity and adding more pressure to the housing affordability crisis.
“Affordability is already a serious challenge for consumers on both sides of the border. It will drive inflation and costs higher right across the board which oddly contradicts the U.S. president’s stated objective of lowering prices and inflation,” he said, in a statement issued today. “The uncertainty of tariffs slowed sales and rental construction on both sides of the border. Tariffs will drive this lower to no purpose.”
The U.S. imports large amounts of steel, aluminum, lumber, cement and gypsum for use in construction. Canada exported 6.56 million tons of steel to the U.S. in 2024, and accounted for 56 per cent of aluminum imports to the U.S. in 2023. Canada also relies on materials imported from the U.S. such as plywood, glass, metal fittings, light fixtures, ceramics, electrical parts, and plumbing and mechanical components. Reciprocal tariffs will raise prices for those goods and supply chains will be disrupted as builders look for alternative sources for materials.
“This will have severe repercussions for the housing sector in the U.S. and Canada and we will undoubtedly have fewer housing starts,” Lyall warned. “The tariffs will only undermine the industry, at a time when the residential construction sector is most in need of stability and certainty.”
RESCON is part of the Canada United States Trade Council which will be providing governments guidance on trade issues facing Canada.
“Adding tariffs to the cost of building materials is irresponsible and reprehensible,” added Lyall. “It benefits no one and only adds to the cost of building a home. One tariff begets another until we are in a full-blown trade war. Tariffs are simply a bad idea and only result in chaos and higher prices for homes. There will be no winner in this trade war. Both countries will lose.”
