The impact of U.S. tariffs on Canada’s rental housing industry
By David Gargaro
Unless you’ve completely ignored all forms of news media in 2025, you’re aware of President Donald Trump’s imposition of tariffs on goods imported into the U.S. The U.S. targeted Canada and Mexico first, and Canada responded with its own countertariffs and reciprocal measures. The tariffs situation has escalated to include China, the European Union, and other countries, affecting everything from small businesses to global supply chains. It’s difficult to pin down the consequences of the tariffs and trade wars, as the situation changes daily. But the impact on Canada’s rental housing industry will be far-reaching and multi-faceted.
Tariffs timeline The tariffs situation is continually being updated. But here are some key events to date. February 1: The U.S. imposes a 25% tariff on products from Canada, with energy products being tariffed at 10%, effective February 4. Canada counters with a 25% retaliatory tariff on certain U.S. goods, with additional tariffs on a wider range of goods to come into effect 21 days later. February 3: The U.S. pauses the tariffs to come into effect on February 4 for 30 days (March 4). Canada follows suit by pausing its first phase of tariffs. February 13: The U.S. announces plans to impose reciprocal tariffs on all countries that impose tariffs and import taxes on U.S. goods. March 4: The U.S. imposes the postponed 25% and 10% tariffs on Canadian goods. Canada imposes 25% retaliatory tariffs on the Phase 1 list of U.S. goods. March 7: The U.S. exempts Canadian products that are CUSMA-compliant from tariffs. Canada pauses the implementation of Phase 2 tariffs on U.S. goods. March 12: The U.S. imposes 25% tariffs on all steel and aluminum imports from Canada.
24 | April 2025
March 13: Canada imposes retaliatory tariffs of 25% on select U.S. products, including steel, aluminum, and some consumer products. April 3: The U.S. imposes 25% tariffs on auto imports. April 5: The U.S. imposes 10% reciprocal tariffs on all imports not from Canada or Mexico. April 9: The U.S. announces a 90-day pause on higher country-specific reciprocal tariffs that were announced on April 2, excluding China from the pause. Canada imposes 25% retaliatory tariffs on autos imported from the U.S.
The impact of tariffs Tariffs are a federal tax on imported goods. When the Trump administration imposes tariffs on Canadian goods imported into the U.S., the importing company pays this tax to the U.S. federal government. That company either absorbs this cost (reducing their profit margin) or passes the cost onto consumers (raising the price of the goods). So, when the Canadian federal government imposes counter-tariffs on American imports, Canadian importers pay this tax to the federal government and either absorb the higher costs or increase the price of goods purchased by Canadian consumers.