By imposing retaliatory tariffs on imports from the U.S., Canada may be cutting off its nose to spite its face.
That’s according to a top Vancouver developer, who said Canada risks a self-destructive reaction to U.S. tariffs by imposing counter-tariffs on 100-plus types of construction materials.
Doing this will make construction costlier, exacerbate Canada’s housing shortage and undermine the country's own housing supply goals, said Brad Jones, chief development officer with Wesgroup Properties LP.
“We formally request that you exempt new construction materials from retaliatory tariffs to provide some stability for the provision of new housing in Canada. The Canadian housing sector is already under immense strain,” Jones wrote in his March 7 letter to three federal ministers responsible for housing, foreign affairs and finance.
One minute after midnight on March 4, the Trump administration imposed tariffs of 25 per cent on almost all Canadian and Mexican imports, with a lower 10 per cent tariff on Canadian energy.
Simultaneously, Canada’s “countermeasures” went into effect on $30 billion of goods imported from the U.S.
Last Thursday, after days of heavy market volatility, Trump signed an executive order delaying his tariffs for goods that meet certain requirements under the Canada-United States-Mexico Agreement on trade, or CUSMA. In response, Canada suspended a second wave of retaliatory tariffs, while keeping the initial countermeasures in place.
In his letter, Jones said Canada’s retaliatory tariffs are “cutting the housing industry off at the knees.” He said new housing plays a critical role in economic growth and job creation.
“These retaliatory tariffs stand in direct opposition to the government’s stated goals on housing and will only serve to worsen the housing crisis for years to come,” he wrote.
– With files from The Canadian Press
