Canada’s new counter-tariffs took effect on September 8. The measures apply tariffs of 15%, 25% and 50% to approximately $27.6 billion in U.S. imports, including construction materials used in new home construction and renovation.
CHBA has reviewed the 629 product categories covered by the measures, and has identified 155 categories related to residential construction and renovation, including 24 categories that may be especially difficult to replace in the short term. These include drywall, carpeting, steel fasteners and fittings, window and door hardware, HVAC equipment, heat pumps, wiring and appliances. (See CHBA’s Industry Issues page for more details.)
The precise residential impact remains difficult to calculate because the import data does not distinguish between products intended for residential construction and those used in commercial or industrial applications. Nevertheless, additional costs and uncertainty could delay projects and further affect housing affordability and renovation activity, particularly while builder confidence remains weak.
CHBA is taking action in two key areas. First, we are working with trade and retail associations involved in the federal tariff-remission process and providing letters of support where appropriate. Second, we are advocating directly with the federal government to ensure that builders are not forced to choose between unavailable materials, substantially higher costs, or products that have not been verified for use in Canada.
CHBA has also proposed a 12-month pilot through the Canadian Construction Materials Centre. The pilot would establish a controlled process for assessing credible non-U.S. construction products that are sufficiently similar to the tariffed products, while the necessary Canadian evidence for full product certification is developed. It would not provide automatic product recognition or replace provincial and territorial approvals.
Further details on this issue’s impact on residential construction and CHBA action to-date can be found on CHBA’s Industry Issues page.
For those looking for more information, MNP, a CHBA Alliance Network member, has valuable resources, including a Trade Impact Navigator that CHBA members may find useful. CHBA remains engaged with government and industry partners and will keep members informed as the situation develops. |