How a trade war and U.S. tariffs could hit Canada’s housing market

A looming trade war with the United States could be “problematic” for Canada’s housing market, industry experts warn, potentially driving up construction and renovation costs on both sides of the border.

The U.S. and Canada are each other’s top trading partners and exchange homebuilding materials worth billions of dollars each year.

Homebuilders are bracing for the impact of a trade war if U.S. President Donald Trump pulls the trigger on Feb. 1 with a 25 per cent tariff on Canadian goods. Prime Minister Justin Trudeau has said he supports the “principle of dollar-for-dollar matching tariffs” if Trump follows through on his threat.

“A trade war started by U.S. tariffs would really be an unfortunate and problematic thing for housing in Canada,” said Kevin Lee, CEO of the Canadian Home Builders’ Association (CHBA).

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