$7.5 Billion In Tariff Relief + Billions For Housing — Is Your Company Eligible?

Toronto, ON – August 29, 2026

Canada’s construction and building-materials industry is facing a rapidly changing market.

Housing starts are under pressure. Canada-U.S. trade tensions have escalated. New tariffs are affecting materials, equipment and supply chains.

At the same time, governments across Canada are committing billions of dollars to housing, infrastructure, tariff relief and Canadian manufacturing.

For builders, developers, contractors, manufacturers and suppliers, there are serious challenges — but also major opportunities.

TARIFFS & CUSMA — COSTS AND SUPPLY CHAINS UNDER PRESSURE

The United States has imposed 50% tariffs on approximately $27.6 billion of Canadian goods, while Canada has announced counter-tariffs on U.S. imports.

The latest Canada-U.S. negotiations have stalled, adding further uncertainty around trade and the future of CUSMA.

For construction and building-material companies, this could mean higher costs for steel, aluminum, electrical products, machinery, appliances, plastics, manufactured components and other materials.

But there is another side to the story.

As companies reconsider U.S. suppliers, governments are increasingly emphasizing Buy Canadian, domestic manufacturing and stronger Canadian supply chains.

That could create significant opportunities for Canadian manufacturers and suppliers.

OTTAWA ANNOUNCES BILLIONS IN TARIFF SUPPORT

The federal government has announced a major package to help tariff-affected businesses, including:

• $1.5 billion more for the Regional Tariff Response Initiative;
• $500 million through BDC’s Pivot to Grow program;
• $2 billion through the Canada Strong Diversification Fund; and
• $3.5 billion in worker and employer supports.

Funding can potentially help companies dealing with liquidity pressures, new equipment, automation, productivity improvements, expansion and market diversification.

HOUSING STARTS — A WARNING FOR THE INDUSTRY

CMHC reported Canada’s annualized housing starts fell 5% in July to 229,074 units.

Actual July starts in larger urban centres were 19% below July 2025, while approximately 141,480 approved units were still waiting to begin construction.

The message is clear:

Canada needs to turn approved housing into shovels in the ground.

Financing costs, development charges, infrastructure, labour and material costs remain major barriers.

GOVERNMENTS ARE RESPONDING

Major housing and infrastructure announcements are now being made across Canada.

Vaughan: Canada and Ontario announced up to $697.2 million for housing-enabling infrastructure as Vaughan reduces residential development charges.

Hamilton: Canada and Ontario announced $572 million, with Hamilton eliminating residential development charges for three years.

Ontario: Another $1 billion has been announced for infrastructure in municipalities that do not collect development charges.

These investments mean more than housing. They mean opportunities for roads, water and wastewater systems, bridges, electrical work, concrete, aggregates, engineering, equipment and building materials.

BUILD CANADA HOMES IS MOVING FORWARD

Build Canada Homes is beginning to move from policy into actual projects.

The federal government has appointed former CMHC CEO Evan Siddall as its inaugural Chair, with a mandate focused on affordable housing, financing builders and encouraging innovative construction using Canadian workers, Canadian technology and Canadian materials.

A Build Canada Homes-supported project in Toronto has already broken ground for 74 rent-controlled homes, incorporating mass timber and energy-efficient construction.

The federal Housing Design Catalogue is also expanding, with more than 50 standardized housing designs intended to make housing easier and faster to approve and construct.

This could create opportunities for modular and prefabricated construction, mass timber, energy-efficient systems and Canadian building-product manufacturers.

PROJECTS ARE MOVING ACROSS CANADA

Recent announcements include new housing and infrastructure investments in Ontario, Alberta, British Columbia and Quebec, while the federal government’s $51-billion Build Communities Strong Fund is supporting housing-enabling and community infrastructure across the country.

Private development is also moving. In Oakville, a major 14-building development planned for approximately 5,600 homes is advancing toward construction.

Every major housing project creates opportunities throughout the construction supply chain.

IS YOUR COMPANY POSITIONED TO BENEFIT?

If you are a builder, developer, contractor, manufacturer or building-material supplier, we would welcome an introductory discussion about your business and the opportunities that may be available.

Let’s identify where your company fits — and then go to work.