TORONTO — Some developers say looming U.S. tariffs on Canadian steel and aluminum could be detrimental to the housing sector due to higher costs of key construction materials.
The Ontario Home Builders' Association, which represents more than 4,000 companies offering services such as development and renovation, says the tariffs could prompt an economic slowdown and lead to decreased investment in residential real estate.
The group's CEO Scott Andison warns this could be "a brutal blow to the housing sector and therefore to housing affordability."
U.S. President Donald Trump signed an executive order on Monday to levy 25 per cent tariffs on steel and aluminum imports to his country beginning March 12 -- a move which Canadian Chamber of Commerce president and CEO Candace Laing calls "wrong on so many levels."
Canada is the largest exporter of steel and aluminum to the U.S., with such exports totalling $35 billion last year, or roughly one per cent of GDP.
Andison says an increase in the cost of construction materials would raise home prices at a time when the sector is already struggling to keep up with rising costs due to inflation.
This report by The Canadian Press was first published Feb. 11, 2025.
The Canadian Press
