The threat of a tariff war is already driving up housing costs
CBC
Many high-rise buildings need I-beams. In fact, they need a lot.
Also known as a wide flange beam, the I-shaped component is used in multi-unit buildings, including residential and commercial ones.
According to Keanin Loomis, president and CEO of the Canadian Institute of Steel Construction, a 20-storey building would take "thousands of tonnes of I-beams."
"It's a crucial part of a builder's inventory. Nothing can be done without those," Loomis said.
It turns out Canadian builders buy most of these crucial parts from steel companies based in the United States.
The I-beam is just one item on a long list of construction and housing materials that could face a 25 per cent tariff should Canada retaliate against the U.S. President Donald Trump's proposed tariffs on a variety of Canadian products.
Industry insiders say even without the imposition of more tariffs, the cost of U.S. steel — including that important I-beam — has already risen.
"The price of steel already went up with the stroke of a pen when Donald Trump announced [tariffs on Canadian steel and aluminum]," Loomis said.
Canada is in the midst of a housing crisis, with calls to build millions of more housing units to help address the problem. According to data from the Canada Mortgage and Housing Corporation (CMHC), Canada would need to build 5.8 million new homes by 2030 to "restore housing affordability."
But housing sector insiders say the mere threat of a tariff war is another painful blow to an industry that has been struggling to get projects off the ground and keep up with demand.
The cost of many construction-related products now seen as vulnerable to higher prices include everything from windows to shingles; cement; certain types of flooring; even bathroom and kitchen appliances coming from the U.S.
All are listed in the Canadian government's proposed tariff list from early February.
Experts say threats of retaliatory tariffs are complicating the national promise to build more homes.
"With material costs now increasing, a lot of projects may just be shelved. I've already heard about projects for new housing being shelved just because of the uncertainty," said Michael Brooks, CEO of the Real Property Association of Canada (Realpac).
