Counter tariffs being planned by Canada on over $27 billion worth of American goods are causing concern among homebuilders in Newfoundland and Labrador. The uncertainty surrounding the situation is making it challenging for businesses, as costs could rise and operations could become more complicated.
Laura Monk, co-owner of Eastwood Homes Ltd. in St. John’s, expressed uncertainty about the future impact of the counter tariffs on their strategic planning. The tariffs, set to be enforced on September 8, target various American products used in home construction, including dishwasher parts, appliances, wooden furniture, plastics, lighting, flooring, and more.
Homebuilders like Monk are closely monitoring the tariff lists, as any increase in costs for components could have a ripple effect on overall expenses. Specifically, concerns are centered on smaller building components like electrical and plumbing, as any price hikes could be passed down through the supply chain.
These developments come at a time when Canadian provinces, including Newfoundland and Labrador, are aiming to boost housing construction. The Progressive Conservative Party, led by Premier Tony Wakeham, has pledged to facilitate the construction of 10,000 new homes in the province over the next five years.
Despite homebuilders being able to source materials from various suppliers, Monk highlighted that the tariffs present yet another challenge following the disruptions caused by the COVID-19 pandemic. Potential delays and supply chain issues are expected to persist with the imposition of tariffs.
Kelly Rogers, executive officer of the Canadian Homebuilders’ Association in Newfoundland and Labrador, emphasized that the tariffs will compound the existing difficulties faced by the construction sector. The current scenario, characterized by a shortage of skilled labor, regulatory changes, a new national building code, and escalating material costs, is creating a tough environment for builders to maintain affordability.
Rogers noted that many homebuilders are adopting a cautious approach, waiting for potential exceptions or accommodations to be made to prevent further escalation of building and housing costs. The Canadian Homebuilders’ Association is actively engaging in discussions with the federal government to address these concerns.