Ontario Construction News staff writer
The Canadian Home Builders’ Association (CHBA) is urging the government to remove GST and HST on all new construction projects and to lower development charges to offset increased costs from tariffs.
Also, the CHBA recognizes that government support “may indeed be needed for residential construction, depending on how things unfold.”
Following President Trump’s announcement on Feb. 1 of a blanket 25% tariff on Canadian imports to the U.S. (excluding energy at 10%), Canada has responded with countervailing tariffs.
The Canadian Home Builders’ Association (CHBA) has been actively engaging with the federal government since December, advocating against the potential impacts of the U.S. tariff policy, which threatens to disrupt Canadian construction. With over $2.5 billion worth of goods and services crossing the border every day, CHBA has advised the government on the necessary steps to mitigate these effects.
“We have seen some success in keeping most construction materials off the tariff list, but appliances and steel remain notable exceptions,” the CHBA said in a statement to Ontario Construction News. “The association continues to engage with federal ministers, Members of Parliament, and other government officials to make sure the residential construction industry isn’t further burdened by rising costs.”
The impact of the trade conflict could be felt in four key areas, according to CHBA:
- A slowdown in Canada’s economy, due to fewer exports to the U.S. and higher tariffs, could lead to a reduction in residential investment, housing starts, and overall supply.
- Canada’s countervailing tariffs, if applied to construction goods, could push up construction costs, making housing even less affordable for Canadians.
- Weakening of the Canadian dollar due to trade imbalances could make imports more expensive, which would further strain construction budgets.
- Inflationary pressures could also lead the Bank of Canada to consider raising interest rates, although it would have to weigh that decision against a potentially slower economy.
While the tariffs in Canada are concerning, the impact in the U.S. may be even more severe, with the National Association of Home Builders warning that Trump’s tariffs will significantly raise construction costs and reduce housing affordability in the U.S. The CHBA has continued to support efforts to remove these tariffs, as well as those related to the ongoing softwood lumber dispute.
The U.S. National Association of Home Builders has been actively advocating with the Trump administration accordingly, to remove these tariffs as well as the tariffs of the long-standing softwood lumber dispute.
CHBA will continue advocating “to ensure all considerations regarding the industry, housing supply and affordability are considered, with an emphasis on avoiding tariffs on construction products and materials.
