On August 22, 2026, trade negotiations between Canada and the USA broke down, and the USA announced tariffs of 50% on Canadian goods that are not covered by CUSMA. This was followed by an announcement by the Government of Canada that it will impose new tariffs on products from the United States, effective September 8, 2026. This will undoubtedly impact our industry. 

As part of this latest round of tariffs, many products across the residential construction industry are included. From furniture and home goods, building materials like lumber, plywood, doors, and cement, plastics and packaging, and machinery and manufacturing inputs, We are deeply concerned that the positive impacts we have seen for our industry, largely in part to the expanded HST relief program and Development Charge Reduction Program, will be negatively impacted due to the latest tariffs announced by the United States government. A full list of the tariffed products can be found here. 

We know that additional costs due to these tariffs will increase the cost of building houses, and mean that fewer projects may move forward. This could result in fewer homes being built and fewer jobs for the skilled tradespeople, suppliers, and workers who build our province and country and depend on this work to support their families. 

The Government of Canada announced that, effective September 8, Canada will impose counter-tariffs of 15, 25, and 50 percent on products subject to U.S. Section 338 and Section 232 tariffs, with each product's rate matching the corresponding U.S. rate. 

In addition, to support Canadian workers and businesses impacted by U.S. tariffs, the government is also introducing a $7.5 billion package of new and enhanced measures that deliver fast, simple and agile support to Canadian workers and businesses, building on the nearly $25 billion in support the government has provided since the implementation of the U.S. unjustified tariffs. 

More details on the federal government’s announcement can be found here. 

Earlier this week, the Government of Ontario announced that it will immediately broaden eligibility for the Protect Ontario Financing Program (POFP) to support impacted Ontario workers and businesses. The expansion will ensure that businesses whose exports are impacted by this new 50 percent spike, as well as those businesses still subject to the existing Section 232 tariffs on steel, aluminum, copper, and automotive products, are equipped to withstand mounting operational pressures and keep workers on the job. 

More details on the province’s plan can be found here. 

We believe relief packages that keep skilled trades workers employed during this time of economic uncertainty are of the utmost importance. CHBA & OHBA are actively communicating with government officials at federal and provincial levels to ensure that the residential construction sector is included in tariff supports. DRHBA will continue inform them about what our members need, so they can continue to work alongside of our government to echo the importance of supporting Ontario businesses and workers. 

We will continue to share more information as it becomes available.