Trump’s latest tariff threats could spell bad news for Canada’s housing outlook
But Trump’s decision to impose 50% tariffs on a swathe of Canadian goods threatens to inject a fresh dose of chaos and raise new questions about which sectors of the economy will be affected.
Negotiators face race against the clock after latest tariff announcement
Yesterday, Trump invoked Section 338 of the Tariff Act to introduce levies on Canadian alcohol and dairy products, with Canada’s treatment of American automotive exports also cited as a driver of the measures, alongside hundreds of other imports from Canada. Jamieson Greer, the US trade representative, said almost $20 billion worth of Canadian goods will be impacted by the measures, which do not exempt CUSMA-compliant products.
Canadian negotiators have nearly a month to avert the latest wave of tariffs – and their past experience of dealing with the Trump White House shows that it’s often possible to avoid or delay the worst-case scenario, with the president frequently pushing back plans or taking threats off the table.
Still, the trade war has long been viewed as one of the biggest threats to the Canadian housing market, and the latest wave of confusion will likely do little to boost homebuyer confidence.
Last week, the Canadian Real Estate Association (CREA) once again downgraded its forecast for 2026 home sales, now predicting a 1.4% decline in resales compared with last year in large part because of a stormy economy.
