On February 1, US President Donald Trump announced 25% tariffs on Canadian imports, and Canada quickly hit back with tariffs of its own.
After last-minute negotiations with Prime Minister Justin Trudeau, President Trump agreed to pause implementation for 30 days. But the threat of a trade war still hangs over both countries, with far-reaching consequences for the housing market.
Higher tariffs would make Canadian goods more expensive for American buyers, potentially leading to lower demand and shrinking profits for Canadian businesses. Economists fear this could trigger layoffs and an economic slowdown, making it harder for people to afford rent or buy homes.
And now that Canada has imposed its own 25% tariffs, prices of US imports will rise, and retailers will likely pass those costs onto consumers. As prices rise, household budgets will tighten, forcing people to cut back on spending, including on housing.
With tariffs in place on both sides of the border, the risk of recession grows. While the housing industry might not be the first to be affected, the consequences of a weaker economy will eventually touch every corner of the market – certain building materials are expected to rise in cost.
Others, like lumber, are mostly produced in Canada – but if suppliers scale back production due to falling US demand, that could have long-term effects on their price and availability north of the border.
For property managers, staying ahead of potential challenges means being proactive and supporting landlords and tenants during uncertain times, by:
- Strengthening rent collection methods by offering multiple payment options, including online payments
- Setting up automated payment reminders and early intervention plans for tenants struggling to pay
- Sharing resources for rent assistance programs
- Encouraging landlords to set aside reserves for unexpected expenses or missed rent payments
More economy headlines
Northern Ontario political voices urge people to be strong in the face of Trump tariffs – CBC
Companies embrace 'buy Canadian' sentiment as tariffs approach – CTV News
Trudeau resigns: what’s next for Canada’s housing market? – PayProp blog
