Counter tariffs set to be imposed by Canada on over $27 billion worth of American goods are causing concern among homebuilders in Newfoundland and Labrador. The impending tariffs, scheduled to take effect on Sept. 8, target various U.S.-made products used in construction and furnishing homes, such as dishwasher components, appliances, wooden furniture, plastics, lighting, vinyl flooring, and more.
Laura Monk, co-owner of Eastwood Homes Ltd. in St. John’s, expressed the challenges faced by the industry, stating that the uncertainty surrounding the tariffs complicates strategic planning for the future. She highlighted the potential impact on costs, especially on smaller components like electrical and plumbing, which could affect subcontractors and lead to price increases downstream.
With Canadian provinces like Newfoundland and Labrador aiming to boost housing construction, the tariffs pose an additional obstacle for builders already grappling with supply chain disruptions and post-pandemic setbacks. Kelly Rogers, executive officer of the Canadian Homebuilders’ Association in the region, described the current situation as a “perfect storm” due to factors like labor shortages, regulatory changes, the new national building code, and rising material costs, making affordability a major concern.
Rogers emphasized the challenges faced by the industry and the ongoing discussions between the Canadian Homebuilders’ Association and the government to address the tariff implications. Both Monk and Rogers are hopeful for potential exemptions to mitigate the impact on construction and housing costs.