IMPACTS OF TRUMP TARIFFS ON THE CANADIAN RESIDENTIAL CONSTRUCTION SECTOR

Canada’s new counter-tariffs took effect on September 8, imposing tariffs of 15%, 25% and 50% on approximately $27.6 billion in U.S. imports. The products affected include a range of construction materials used in new home construction and renovation.
CHBA has completed an analysis of the affected products to better understand the potential impact on Canada’s residential construction industry and is actively advocating on behalf of home builders, renovators and their customers.

Potential Impact on Residential Construction

Of the 629 product categories subject to Canada’s counter-tariffs, CHBA identified:

• 155 categories that may be directly related to new home construction and renovation.
• 24 categories that may be particularly difficult to replace with Canadian or non-U.S. products in the short term.
• More than $4.8 billion in U.S. building material imports within those 24 categories that are now subject to tariffs ranging from 15% to 50%.

It is important to note that available import data does not distinguish between products used in residential construction and those used in commercial or industrial construction. As a result, the precise impact on the residential sector cannot yet be calculated, and the effect will vary from business to business.

Construction Products Most Affected?

CHBA’s analysis identified several products with significant exposure to the new or reimposed tariffs:

• Synthetic carpeting: 25% tariff
• Gypsum board and drywall: 50% tariff
• Iron or steel tubing, elbows and sleeves: 50% tariff
• Iron or steel screws, bolts and nuts: 50% tariff
• Other threaded articles and washers made of iron or steel: 50% tariff
• Gas-fired furnaces: Existing 25% tariff remains in place
• Metal hardware for windows and doors: 25% tariff
• Heat pumps: 15% tariff
• Insulated electrical wiring under 1,000 volts: 25% tariff

Other affected categories include HVAC equipment, steel fasteners and fittings, appliances, and additional window and door components.

Why This Matters?

The new tariffs may result in:

• Increased construction and renovation costs
• Supply-chain disruptions
• Fewer readily available product options
• Project delays
• Greater uncertainty for builders, renovators and consumers
• Additional pressure on housing affordability

The impact goes beyond the direct cost of materials. Builder confidence has remained pessimistic since 2023, and further cost increases and uncertainty could delay new housing projects and weaken consumer confidence at a time when Canada urgently needs more housing.

What CHBA Is Doing

CHBA is taking action in several key areas to support members and protect housing affordability.

Supporting Tariff-Remission Requests

CHBA is working with trade and retail associations involved in the federal tariff-remission process and is providing letters of support where appropriate.
These industry associations are well positioned to identify affected products and demonstrate where relief may be required because suitable alternatives are unavailable.

Advocating Directly With the Federal Government

CHBA is communicating directly with the federal government to ensure home builders and renovators are not forced to choose between:

• Products that are unavailable
• Materials with substantially higher costs
• Unfamiliar imported products that have not been verified for use in Canada

CHBA has proposed a 12-month pilot program through the Canadian Construction Materials Centre, working with standards and conformity-assessment partners.

The proposal was directed to Minister of Industry, Melanie Joly,with the Minister of Housing, Minister responsible for Canada-U.S. Trade, Minister of Finance and Prime Minister included in the communication. 

The proposed pilot would create a controlled process for assessing credible non-U.S. construction products that have sufficiently similar product and building-code requirements. This would help suitable products enter the Canadian market while the evidence required for full Canadian certification is developed.

The proposed process would:

• Provide a triage and assessment service for potentially suitable products
• Help builders identify credible alternatives to tariffed U.S. products
• Maintain safety and performance requirements
• Support the development of the Canadian evidence needed for full certification

The pilot would not provide automatic product recognition and would not replace provincial or territorial approvals.

Letter to Minister of Industry

Information provided by CHBA National and current as of September 2026. CHBACI will continue to share updates as they become available.