In Saturday’s Government Relations Update (GRU), we provided members with information on the Trump Administration’s newest tariffs on $27.6 billion worth of Canadian goods, which took effect on August 22 following the deterioration of trade talks between the two countries.
While many Canadians applaud Prime Minister Mark Carney’s decision to walk away from the negotiating table until “the Americans go to the negotiating table first, with the right attitude towards our industries and in a true partnership,” the concern facing the residential construction industry, along with many other sectors, is how the U.S. tariffs and Canada’s counter-tariffs will affect Canadian businesses and consumers.
HAVAN is staying in close contact with CHBA to monitor the situation. We have asked CHBA to provide a provincial breakdown as they work to assess the cost and supply-chain implications for construction materials. We expect to receive further information early this week and will share it with members as soon as it becomes available.
There is hope the two governments will find a path forward before September 8, when Canada’s counter-tariffs are scheduled to take effect but as has been demonstrated time and again, the current U.S. administration’s position can change quickly. If the tariffs proceed as announced, HAVAN will work with CHBA to host a webinar for members to provide the latest information available on affected products, potential cost implications and supply-chain considerations.
As mentioned in GRU, I have the opportunity to attend a Housing, Infrastructure and Communities Roundtable with Gregor Robertson Minister of Housing and Infrastructure tomorrow afternoon on behalf of CHBA. The discussion is to focus on factors constraining housing construction and affordability, including financing, development costs, regulatory barriers, infrastructure constraints, and labour shortage but tariffs will no doubt take center stage.
In the meeting, the main message on behalf of members to the Minister will be that tariffs will only exacerbate the housing crisis. Measures that weaken Canada’s economy, increase construction costs or reduce consumer confidence also place further downward pressure on housing starts. The repercussions extend across Canada’s residential construction industry and ultimately affect housing supply and long-term affordability across all housing types.
This is a continued message from when the first U.S. tariff threat emerged in late 2024. CHBA began warning the federal government about the potential consequences for housing. In a January 2025 letter, CHBA specifically asked the government to exclude construction materials from any Canadian retaliatory tariffs. CHBA has continued to advance this position throughout the trade dispute, warning that these tariffs increase costs and cause delays for new housing, renovations, infrastructure and the community amenities needed to support growing neighbourhoods.
Where counter tariffs are considered necessary, CHBA asks that Canada target U.S. imports with the minimum impact on Canadian businesses and construction costs. This includes product categories for which sufficient supply is available within Canada or from other trading partners.
Unlike the thrill rides at Playland, this economic rollercoaster is one we all want to see end quickly. The continued economic instability gives Canadians good reason to protect their finances and delay major decisions such as purchasing a new home or proceed with a home renovation. At the same time, builders and renovators face greater difficulty pricing projects, managing contracts and planning future work when material costs and trade policy remain uncertain.
Let’s hope the U.S. Administration and its negotiators recognize that Canada will defend its industries and return to the table prepared to negotiate in good faith. Until then, HAVAN and CHBA will continue pressing governments to protect housing from further cost increases and provide the certainty our industry and Canadian homebuyers urgently need.
IN CASE YOU MISSED IT
On Wednesday, August 28, CHBA National sent out their National Update newsletter to provide members across the country with a summary of how the U.S. tariffs and Canada’s counter-tariffs could impact our industry. See below for the original editorial.
New Tariffs: What They Mean for CHBA Members
Ongoing trade negotiations between Canada and the United States have broken off with Canada walking away from the bargaining table. The negotiations were to avoid a 50% tariff on approximately $28 billion on Canadian goods to come into effect on August 22. On August 25, the Government of Canadian announced that it will match the new U.S. tariffs dollar for dollar, rate for rate, with additional Canadian tariffs on U.S. goods. Effective September 8, Canada will impose counter-tariffs of 15, 25 and 50 per cent on products drawn from those targeted by U.S. with the rate for each product matching the corresponding U.S. rate. Canada’s counter tariffs will apply to products covering $27.6 billion in imports from the U.S. Of the 874 entries in the list released by Canada, some are truly consequential to new home and renovation construction. CHBA is undertaking an analysis on whether some of these items can be sourced in Canada or from other (non-U.S. countries) in order to avoid increased tariffs. CHBA has a more in-depth explanation of the current situation available on the CHBA Industry Issues page. As has been the case when talks of U.S. tariffs first started, CHBA remains engaged with federal government officials to illustrate the potential impacts on tariffs on the industry, including the impact that economic/political uncertainty has on consumer confidence. CHBA also remains engaged with strategic partners.
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HAVAN continues to work with CHBA BC and CHBA to advocate for all levels of government to work together tress the challenges of the housing industry including zoning restrictions, density limits, and NIMBYism.
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