Ontario Construction News staff writer
Ontario’s housing sector is bracing for significant challenges following the Trump administration’s latest decision to impose a 25% tariff on Canadian steel and aluminum. The Ontario Home Builders’ Association (OHBA) warns that the tariffs could have a profound negative impact on the province’s housing industry, potentially driving up costs, slowing construction, and exacerbating affordability issues.
The tariffs, announced earlier this week, are expected to ripple through Ontario’s economy, which heavily relies on steel and aluminum production. According to OHBA CEO Scott Andison, the housing sector stands at a critical juncture as these added costs threaten to slow down residential construction and deter investment.
“We’re at a turning point, not only for the Canadian economy, but specifically for the housing sector in Ontario,” Andison said. “The potential impact of an economic slowdown, job loss, and decreased investment in residential real estate could be a brutal blow to the housing sector and therefore to housing affordability for Ontarians.”
The increased cost of steel and aluminum—both essential materials in home construction—could translate into higher expenses for builders, potentially leading to price hikes for new homes. This comes at a time when Ontario’s housing sector is already grappling with rising costs due to inflation and supply chain challenges.
Projects currently under construction are expected to see immediate cost increases, which could put additional pressure on developers and homebuyers alike. Additionally, a weaker Canadian dollar—another likely consequence of the tariffs—could further inflate costs, making housing even less affordable for Ontarians.
The OHBA also expressed concern over the potential for retaliatory tariffs from Canada, which could escalate economic strain on the housing sector. While such measures might be politically necessary, Andison cautioned against applying them to construction materials, urging policymakers to minimize harm to the industry.
“While retaliatory tariffs may be needed, I’d like to see construction materials, particularly those vital to the residential construction industry, excluded,” he said. “We don’t want to make a bad situation worse.”
The OHBA intends to collaborate with the Ontario government to explore ways to mitigate the fallout from the tariffs. With the housing sector already facing challenges in meeting demand, industry leaders stress the importance of keeping construction costs manageable to maintain progress in increasing housing supply.
Ontario’s builders, policymakers, and homebuyers will be watching closely to assess the broader economic implications of these tariffs—and what can be done to lessen their impact.
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