Counter tariffs being considered by Canada on over $27 billion worth of American goods are causing concern among homebuilders in Newfoundland and Labrador. Laura Monk, co-owner of Eastwood Homes Ltd. in St. John’s, expressed uncertainty regarding the impact these tariffs may have on their business operations and strategic planning. The counter tariffs are scheduled to take effect on September 8 and target various U.S.-made products used in home construction and furnishing, such as dishwasher components, appliances, wooden furniture, plastics, lighting, flooring, and more.
Homebuilders like Monk are closely monitoring the tariff lists as any imposed tariffs on essential components could lead to increased costs throughout the supply chain. She highlighted the potential implications on residential building elements like electrical and plumbing, which could affect subcontractors and ultimately result in price escalations.
The tariffs come at a time when Canadian provinces, including Newfoundland and Labrador, are aiming to stimulate housing construction. The commitment to build 10,000 new homes in the province over five years by the Progressive Conservative Party, led by Premier Tony Wakeham, has been emphasized.
Despite builders sourcing materials from various suppliers, Monk pointed out that the tariffs are compounding existing challenges faced by the industry post-COVID-19. Kelly Rogers, executive officer of the Canadian Homebuilders’ Association in Newfoundland and Labrador, echoed concerns about the tariffs exacerbating the difficulties already present in the construction sector, including labor shortages, regulatory changes, and rising material costs.
Rogers described the current situation as a “perfect storm” and emphasized the need for affordability amidst the mounting pressures. She mentioned ongoing discussions between the Canadian Homebuilders’ Association and the federal government regarding the tariffs, expressing hope for potential exceptions to prevent excessive cost burdens on builders and homebuyers.
Both Monk and Rogers underscored the importance of navigating through the uncertainties and challenges, emphasizing the collaborative efforts to address the impacts of the tariffs on the housing industry.
