A potential trade war with the U.S. could significantly disrupt Canada’s housing market, experts warn. U.S. tariffs on Canadian goods, especially construction materials, could drive up costs for both homebuilders and renovators. The U.S. and Canada are major trade partners, with billions of dollars worth of building materials exchanged annually. Key materials such as glass, appliances, hardware, and softwood lumber could see price hikes, which would make housing less affordable and slow down construction.
The Canadian Home Builders’ Association (CHBA) and real estate experts are concerned that retaliatory tariffs could further strain housing supply and affordability, especially as Canada works to increase housing starts. The Bank of Canada also cautioned that a trade conflict could disrupt the economy.
While some suppliers are exploring alternative sources, experts suggest that Canada’s long-term diversification in supply chains could be a positive outcome. Short-term solutions, such as removing GST on new homes or cutting development taxes, could help mitigate the impact on the housing market.
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