Latest news with #CanadianChamberOfCommerce
CTV News
22-07-2025
- Business
- CTV News
Canada tariffs could add US$14,000 to the cost of building a U.S. home by 2027, report warns
Softwood lumber is used to frame and remodel the majority of homes in the US. Lumber tariffs could make it even harder for many Americans to afford a home. (David Paul Morris/Bloomberg/Getty Images/File via CNN Newsource) U.S. President Donald Trump's tariffs could have an unintended side effect: making homeownership even less affordable for many Americans. A new report from the Canadian Chamber of Commerce estimates that the average cost of building a U.S. home could rise by an additional US$14,000 by the end of 2027 if tariffs on Canadian imports remain in place, even as many experts estimate that America needs millions more affordable homes. In 2023 alone, Canada accounted for 69 per cent of U.S. lumber imports, 25 per cent of imported iron and steel and 18 per cent of copper imports, all key construction materials, the report said. In a statement, the White House pushed back on the assertion that tariffs would increase costs for Americans. 'The Administration has consistently maintained that the cost of tariffs will not be borne by American consumers, but by foreign exporters who rely on access to the American economy, the world's biggest and best consumer market,' White House spokesperson Kush Desai said. 'A new CEA (Council of Economic Advisors) analysis proves just that: prices of imported goods have actually fallen this year despite President Trump's historic tariffs.' Canada is the third-largest source of imports used in U.S. home construction, behind China and Mexico, according to the National Association of Home Builders, a U.S.-based trade group. Though the Canadian Chamber of Commerce report doesn't estimate the impact of duties on imports from China or Mexico, it underscores that Trump's tariff policy, intended to support American industry, may instead worsen housing affordability at a time when home prices hover near record highs and mortgage rates remain stubbornly elevated. Taking into account tariffs first imposed during Trump's first term, the total added cost from tariffs could reach US$20,000 per home by 2027, the Canadian Chamber of Commerce found. U.S.-Canada trade tensions Trade tensions between the U.S. and Canada have lately reached a fever pitch, with some Canadians threatening to boycott US-made goods and others selling their stateside vacation homes. Trump has announced new tariffs on Canada since taking office in January, including additional tariffs on imported Canadian softwood lumber, a key component used in the framing and remodeling of homes. Nearly US$13 billion — or roughly 7 per cent — of the estimated US$184 billion of goods that went into new single-family and multifamily construction in 2023 were imported, according to the NAHB. Lumber made up the majority of those imports at US$8.5 billion, the NAHB said — and 70 per cent of lumber imported specifically for US home construction came from Canada. Trump has changed the tariff rate he plans to impose on Canadian imports several times since taking office. Most recently, Trump announced plans to impose a 35 per cent tariff on Canadian goods that are not compliant with the US-Mexico-Canada Agreement (USMCA) starting August 1. Trump has also imposed a 50 per cent tax on all imported steel and aluminum and has threatened a 50 per cent tariff on all copper imports. Those tariff announcements have already hit the construction industry. According to an NAHB survey from April, 60 per cent of home builders were already seeing tariff-related price increases. However, not all home builders use imported materials, NAHB's chief economist, Rob Dietz, told CNN. 'It's important to note that about 40 per cent of the builders in our survey noted no cost effect,' he added. The Canadian Chamber of Commerce's report highlighted Texas, Florida and California as states that would likely feel price shocks most acutely, due to being heavily reliant on imported construction goods. Still, Dietz said many home builders have indicated that they're having difficulty pricing construction projects accurately due to tariff uncertainty.
CNN
22-07-2025
- Business
- CNN
Canada tariffs could add $14,000 to the cost of building a home by 2027, report warns
President Donald Trump's tariffs could have an unintended side effect: making homeownership even less affordable for many Americans. A new report from the Canadian Chamber of Commerce estimates that the average cost of building a US home could rise by an additional $14,000 by the end of 2027 if tariffs on Canadian imports remain in place, even as many experts estimate that America needs millions more affordable homes. In 2023 alone, Canada accounted for 69% of US lumber imports, 25% of imported iron and steel and 18% of copper imports, all key construction materials, the report said. In a statement, the White House pushed back on the assertion that tariffs would increase costs for Americans. 'The Administration has consistently maintained that the cost of tariffs will not be borne by American consumers, but by foreign exporters who rely on access to the American economy, the world's biggest and best consumer market,' White House spokesperson Kush Desai said. 'A new CEA (Council of Economic Advisors) analysis proves just that: prices of imported goods have actually fallen this year despite President Trump's historic tariffs.' Canada is the third-largest source of imports used in US home construction, behind China and Mexico, according to the National Association of Home Builders, a US-based trade group. Though the Canadian Chamber of Commerce report doesn't estimate the impact of duties on imports from China or Mexico, it underscores that Trump's tariff policy, intended to support American industry, may instead worsen housing affordability at a time when home prices hover near record highs and mortgage rates remain stubbornly elevated. Taking into account tariffs first imposed during Trump's first term, the total added cost from tariffs could reach $20,000 per home by 2027, the Canadian Chamber of Commerce found. Trade tensions between the US and Canada have lately reached a fever pitch, with some Canadians threatening to boycott US-made goods and others selling their stateside vacation homes. Trump has announced new tariffs on Canada since taking office in January, including additional tariffs on imported Canadian softwood lumber, a key component used in the framing and remodeling of homes. Nearly $13 billion — or roughly 7% — of the estimated $184 billion of goods that went into new single-family and multifamily construction in 2023 were imported, according to the NAHB. Lumber made up the majority of those imports at $8.5 billion, the NAHB said — and 70% of lumber imported specifically for US home construction came from Canada. Trump has changed the tariff rate he plans to impose on Canadian imports several times since taking office. Most recently, Trump announced plans to impose a 35% tariff on Canadian goods that are not compliant with the US-Mexico-Canada Agreement (USMCA) starting August 1. Trump has also imposed a 50% tax on all imported steel and aluminum and has threatened a 50% tariff on all copper imports. Those tariff announcements have already hit the construction industry. According to an NAHB survey from April, 60% of home builders were already seeing tariff-related price increases. However, not all home builders use imported materials, NAHB's chief economist, Rob Dietz, told CNN. 'It's important to note that about 40% of the builders in our survey noted no cost effect,' he added. The Canadian Chamber of Commerce's report highlighted Texas, Florida and California as states that would likely feel price shocks most acutely, due to being heavily reliant on imported construction goods. Still, Dietz said many home builders have indicated that they're having difficulty pricing construction projects accurately due to tariff uncertainty.
CNN
22-07-2025
- Business
- CNN
Canada tariffs could add $14,000 to the cost of building a home by 2027, report warns
President Donald Trump's tariffs could have an unintended side effect: making homeownership even less affordable for many Americans. A new report from the Canadian Chamber of Commerce estimates that the average cost of building a US home could rise by an additional $14,000 by the end of 2027 if tariffs on Canadian imports remain in place, even as many experts estimate that America needs millions more affordable homes. In 2023 alone, Canada accounted for 69% of US lumber imports, 25% of imported iron and steel and 18% of copper imports, all key construction materials, the report said. In a statement, the White House pushed back on the assertion that tariffs would increase costs for Americans. 'The Administration has consistently maintained that the cost of tariffs will not be borne by American consumers, but by foreign exporters who rely on access to the American economy, the world's biggest and best consumer market,' White House spokesperson Kush Desai said. 'A new CEA (Council of Economic Advisors) analysis proves just that: prices of imported goods have actually fallen this year despite President Trump's historic tariffs.' Canada is the third-largest source of imports used in US home construction, behind China and Mexico, according to the National Association of Home Builders, a US-based trade group. Though the Canadian Chamber of Commerce report doesn't estimate the impact of duties on imports from China or Mexico, it underscores that Trump's tariff policy, intended to support American industry, may instead worsen housing affordability at a time when home prices hover near record highs and mortgage rates remain stubbornly elevated. Taking into account tariffs first imposed during Trump's first term, the total added cost from tariffs could reach $20,000 per home by 2027, the Canadian Chamber of Commerce found. Trade tensions between the US and Canada have lately reached a fever pitch, with some Canadians threatening to boycott US-made goods and others selling their stateside vacation homes. Trump has announced new tariffs on Canada since taking office in January, including additional tariffs on imported Canadian softwood lumber, a key component used in the framing and remodeling of homes. Nearly $13 billion — or roughly 7% — of the estimated $184 billion of goods that went into new single-family and multifamily construction in 2023 were imported, according to the NAHB. Lumber made up the majority of those imports at $8.5 billion, the NAHB said — and 70% of lumber imported specifically for US home construction came from Canada. Trump has changed the tariff rate he plans to impose on Canadian imports several times since taking office. Most recently, Trump announced plans to impose a 35% tariff on Canadian goods that are not compliant with the US-Mexico-Canada Agreement (USMCA) starting August 1. Trump has also imposed a 50% tax on all imported steel and aluminum and has threatened a 50% tariff on all copper imports. Those tariff announcements have already hit the construction industry. According to an NAHB survey from April, 60% of home builders were already seeing tariff-related price increases. However, not all home builders use imported materials, NAHB's chief economist, Rob Dietz, told CNN. 'It's important to note that about 40% of the builders in our survey noted no cost effect,' he added. The Canadian Chamber of Commerce's report highlighted Texas, Florida and California as states that would likely feel price shocks most acutely, due to being heavily reliant on imported construction goods. Still, Dietz said many home builders have indicated that they're having difficulty pricing construction projects accurately due to tariff uncertainty.
CTV News
11-07-2025
- Business
- CTV News
Business leaders lament latest threats in U.S. trade talks
TORONTO — Business groups and analysts are decrying U.S. President Donald Trump's stated intention to impose a 35 per cent tariff on Canadian goods and the spike in uncertainty the threat alone creates. Derek Holt, head of capital markets economics at Scotiabank, says that based on the tariff rate apparently only affecting non-CUSMA compliant goods, it equates to an effective rate of between about four and seven per cent on imports from Canada. He says in a note that even with the more narrow application, it could still be a 'meaningful hit' while Trump's various tariff threats globally are pushing uncertainty indicators up. Candace Laing, head of the Canadian Chamber of Commerce, said in a statement that the tariffs would continue to damage the 'most productive trade relationship two countries have ever had' and urged both sides to reach a real and reliable deal. Giles Gherson, CEO of the Toronto Region Board of Trade, says members are 'deeply frustrated' by yet another turn in U.S. trade policy that is not grounded in economic logic. He says the federal government must keep negotiating for the best deal possible, while the business community needs to focus on what it can control. --- Ian Bickis, The Canadian Press This report by The Canadian Press was first published July 11, 2025.
CTV News
18-06-2025
- Business
- CTV News
Calls mount for pause on Canada's digital services tax targeting tech giants
Minister of Finance and National Revenue François-Philippe Champagne speaks to reporters ahead of a cabinet meeting on Parliament Hill in Ottawa, on Tuesday, June 10, 2025. THE CANADIAN PRESS/Spencer Colby OTTAWA — Ottawa is under pressure to pause digital services tax legislation that directs large tech companies to make a big retroactive payment by June 30. Canadian and U.S. business groups, organizations representing U.S. tech giants and American members of Congress have signed letters calling for the tax to be eliminated or paused. The Canadian Chamber of Commerce and other organizations say retaliatory measures in a U.S. spending and tax bill could hit Canadians' pension funds and investments. The tax is set to come into effect just weeks before a deadline Canada and the U.S. have set for coming up with a new trade deal. The tax, which will hit companies like Amazon, Google, Meta, Uber and Airbnb, imposes a three-per-cent levy on revenue from Canadian users. It's expected to bring in an estimated $7.2 billion over five years and the first payment is retroactive to 2022. --- Anja Karadeglija, The Canadian Press This report by The Canadian Press was first published June 18, 2025.
