Canada-US Tariff Dispute Raises Residential Construction Costs
Canada: Counter-tariffs introduced on 8 September 2026 are increasing residential construction costs in Ontario, according to a report by the Residential Construction Council of Ontario (RESCON). The measures are estimated to add CAD 9,000 to CAD 14,000 (approximately USD 6,500 to USD 10,100) to the cost of a typical single-detached home and CAD 18,000 to CAD 28,000 (approximately USD 13,000 to USD 20,200) to a mid-rise residential unit. These additional costs come on top of the CAD 15,000 to CAD 25,000 (approximately USD 10,800 to USD 18,000) already attributed to measures introduced in March 2025. The affected materials include structural steel, reinforcing bars, electrical wiring, vinyl products, radiators, cabinet hardware, carpets and heat pumps.
RESCON stated that the measures could further affect housing affordability, disrupt supply chains and delay residential construction. The Canadian Home Builders' Association has recommended avoiding tariffs on construction materials, while the Canadian Construction Association has identified steel, aluminium, timber products, fasteners, HVAC equipment, scaffolding, doors and windows, and lifting machinery among the affected segments. The Ontario Home Builders' Association is coordinating with RESCON on submissions concerning development-charge offsets for builders able to demonstrate tariff-related cost increases. RESCON president Richard Lyall said: “This should not, in any way, be construed as a criticism of the Canadian government’s decision to respond to the U.S. with counter-tariffs.”
Source: Plumbing & HVAC
