U.S.-Canada Tariffs May Raise Home Construction Costs; Low-Rate Loans Offer Relief
The U.S.-Canada trade war is expected to increase the cost of home renovations and construction due to retaliatory tariffs on key building materials. Canada imposed tariffs in response to President Trump's 50% tariff on Canadian products like plywood, laminated veneer lumber, fiberboard, and Portland cement—materials commonly used in residential projects. The National Association of Home Builders (NAHB) warns that these tariffs could strain supply chains and raise construction costs. This is not the first time such trade policies have affected home prices; a previous round of tariffs led to a 6.3% price increase, adding an average $10,900 per home in 2025. NAHB Chairman Bill Owens has called for exemptions on building materials amid ongoing housing affordability concerns. Consumers can mitigate some cost increases by using low-rate financing options such as HELOCs or cash-out refinances, which are typically more affordable than unsecured loans.
Topics: construction costs home building tariffs U.S.-Canada trade war