Homebuilding crisis: Some producers face existential threat from US tariffs
“Whenever there’s uncertainty, everyone sort of stops,” he said. “The buyers stop, the sellers stop and wait. We’ve a little more price volatility, and some producers may be able to capture higher prices and absorb some of the duties going across the border. But other products, probably not.”
Economists have also highlighted risks to the interest-rate outlook. The Bank of Canada is expected to keep its benchmark rate on hold when it meets this week, meaning variable rates will likely stay unchanged for now – but fixed rates could be set for a prolonged upward climb as bond market jitters continue to roil US Treasuries.
Builders typically take a hit when confidence in the housing market and economy drops – and while experts don’t see the current trade dispute escalating into a full-blown meltdown for the Canadian economy, it’s still expected to put jobs at risk in tariff-impacted industries, particularly in Ontario.
Taylor sees that causing further problems for smaller producers of construction materials. “People in Canada are going to be afraid for their jobs. They aren’t going to be looking for big outlays of cash,” he said. “It’s just a period of extreme uncertainty – and it’s the little companies that have worked so hard to stay alive that are now under threat too.”
