OTTAWA — The Canadian construction industry is expressing concerns that a trade war with the United States will significantly impede the pace of home construction across the country. According to Kevin Lee, the CEO of the Canadian Home Builders' Association, the recent tariffs imposed by the U.S. on Canadian goods will initially have a "muted" impact on the construction industry by themselves.
However, Lee warns that the broader economic slowdown anticipated as a result of these tariffs could have a more pronounced effect on the housing market, potentially leading to a decrease in housing starts. This potential downturn in the economy, he suggests, could hinder growth and stability in the housing sector.
In retaliation to U.S. President Donald Trump’s trade measures, Canada has announced retaliatory tariffs affecting approximately $30 billion worth of U.S. goods. These counter-tariffs are expected to expand, with billions more set to be implemented in the following three weeks. Lee highlights that if these retaliatory tariffs adversely impact essential construction materials imported from the U.S., the increased costs could further burden builders and developers.
In light of these challenges, Lee emphasizes the role of municipalities in mitigating the slowdown by accelerating approval processes for new housing projects and reducing development charges. Such actions could help in facilitating the construction of new homes, thus supporting the housing market despite the negative repercussions of the trade conflict.
The sentiment within the construction industry reflects a growing anxiety regarding the potential long-term effects of the ongoing trade tensions with the United States. The Canadian building sector is crucial to the economy, and any downturn could have widespread implications for employment and economic growth.
This report was initially published on March 4, 2025, detailing the complexities and challenges faced by the Canadian construction industry in the context of international trade disputes.
Craig Lord, The Canadian Press
