Counter tariffs Canada is preparing to place on more than $27 billion worth of American products has left a cloud of uncertainty over homebuilders in Newfoundland and Labrador, who say business could become more expensive and difficult.
“We’re still in a place where we don’t really know what’s going to happen,” said Laura Monk, co-owner of St. John’s-based Eastwood Homes Ltd.
“That just leaves us in a place of strategic planning [being] a little bit difficult when it comes to what your 2027 plan [is].”
The counter tariffs Canada is implementing are set to come into effect on Sept. 8 and include products manufactured in the United States used to build and furnish homes. That includes everything from dishwasher parts and other appliances to wooden kitchen furniture, plastics, lighting, vinyl flooring, joiners and more.
Monk and other homebuilders are keeping a close eye on tariff lists, as any kind of tariff on a number of components will have a trickle-down effect on costs.
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“I think the biggest thing that we’re watching would be some of the smaller components in residential building. So for example, electrical and plumbing,” she said.
“If that’s the case, then our sub-trades are impacted. So if they’re impacted, then of course that gets passed along, and then we’re really uncertain of where their prices will go from there.”
It all comes as Canadian provinces — including Newfoundland and Labrador — are committing to jumpstarting housing builds. The Progressive Conservative Party, led by Premier Tony Wakeham, committed to a goal of 10,000 new homes in the province over five years during its election campaign.
While builders can usually get what they need from a variety of sources, Monk said tariffs are the latest hurdle in a series of setbacks that homebuilders have faced for years following the COVID-19 pandemic.
“With the tariffs [could come] more delays. We’ve already experienced chain supply issues, and we feel like this is probably going to come again,” Monk said.
Kelly Rogers, executive officer of the Canadian Homebuilders’ Association in Newfoundland and Labrador, said the tariffs will add to an already challenging period for construction.
“It’s almost like a perfect storm right now. We have the shortage of skilled labour, we have regulations, we have a new national building code that’s coming into effect which will certainly affect the costs of building. We also have the increased cost of building materials,” Rogers said.
“So with all of that together, it makes it pretty difficult and challenging to look at affordability these days.”
Rogers said many homebuilders feel it’s a “wait and see game” as the Canadian Homebuilders’ Association are heavily involved in tariff discussions with the federal government.
Both she and Monk hope exceptions can be made in some regard to help keep both build and home costs from ballooning.
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