Canada’s housing crisis deepens as U.S. tariffs would spike the price of key materials

With the ongoing threat of U.S. tariffs looming, experts warn that they will drastically harm the Canadian housing market if implemented.

This week, U.S. President Donald Trump’s 25 per cent tariff threat on Canadian goods was postponed for 30 days.

While this may appear as a much-needed relief, a recent report from real estate experts at Wahi noted that, if these tariffs return, they will cause significant damage to the already struggling Canadian housing market.

Wahi’s report notes that, if the tariffs come into effect, homebuyers will be severely impacted by significant job losses and skyrocketing costs of daily goods — driving up the already severe Canadian cost-of-living crisis.

Operating in tandem with potential tariffs imposed by the U.S. is Canada’s response, specifically, through our own tariffs that would result in a full-scale trade war.

As a result, researchers at Wahi noted that if such a scenario were to occur, costs surrounding out-of-country building materials would substantially increase.

However, one silver lining noted in Wahi’s report is that at this time, Canada does have an abundance of certain building materials, such as concrete and lumber.

Despite this alleged stockpile, Wahi’s report noted that it still isn’t enough, as data showed that before the initial tariff implementation from earlier this month, the Residential Construction Council of Ontario stated that there was still a severe need for new suppliers.

This factor in tandem with tariffs, would cause even further disruption to Canada’s homebuilding market.

For more information on Wahi’s report, visit their official website.