The Ontario Home Builders’ Association (OHBA) is sounding the alarm on the impact of the Trump administration’s intended tariffs on Canadian steel and aluminum.

The OHBA warned that the move, if carried out as scheduled in March, will have serious consequences for the province’s housing sector.

Industry experts fear a slowdown in the economy that could hit residential construction particularly hard. The threatened tariffs could have widespread implications on the multi-family rental and condominium development sectors. Ontario, as a key player in Canada’s steel and aluminum exports, is expected to bear the brunt of the policy.

The steel and aluminum tariffs would be stacked on top of other tariffs, meaning that they would be added to other 25% tariffs and spell a 50% tariff hit, Trump said earlier this week.

“We’re at a turning point, not only for the Canadian economy, but specifically for the housing sector in Ontario,” said Scott Andison, CEO of the OHBA. “I’m worried about the effect that these new tariffs will have on residential construction. The potential impact of an economic slowdown, job loss, and decreased investment in residential real estate, could be a brutal blow to the housing sector and, therefore, to housing affordability for Ontarians.”

The tariffs are expected to drive up costs for key construction materials used in new-home builds, including projects already in progress. Higher material costs will translate to increased construction expenses, ultimately pushing up the price of new homes.

That would worsen affordability issues in a housing market already struggling with inflationary pressures, says the OHBA.

Pictured: Condominium towers under construction in Toronto.

Photo: Toronto Realty Boutique