Ontario Housing Sector Faces Challenges Amid US Tariffs on Steel and Aluminium
Canada: Ontario’s housing sector is expected to face difficulties following the United States' decision to impose a 25 percent tariff on Canadian steel and aluminium. The Ontario Home Builders’ Association (OHBA) has expressed concerns that these tariffs could increase construction costs, slow down residential projects, and further impact housing affordability. As steel and aluminium are essential materials in home construction, the added costs may lead to price increases for new homes, affecting both developers and buyers. The situation is compounded by existing inflation and supply chain issues, while a weaker Canadian dollar could further escalate costs. Projects already under construction are likely to see immediate cost increases, putting additional financial strain on the industry.
The OHBA has also raised concerns about potential retaliatory tariffs from Canada, which could add to economic pressures. The association has urged policymakers to exclude construction materials from such measures to avoid further disruptions. Industry leaders are now working with the Ontario government to explore ways to minimise the impact of the tariffs. With ongoing challenges in meeting housing demand, they stress the need to keep construction costs manageable to ensure continued progress in increasing housing supply. Stakeholders across the housing sector are closely monitoring the economic effects of these tariffs and considering measures to mitigate their consequences.
Source: Ontario Construction News