Canada Slaps $20B Counter-Tariffs on US Goods, Home Costs Expected to Rise

The trade war between the US and Canada is escalating, with Canada imposing $20 billion in counter-tariffs on over 700 US goods. The tariffs, which take effect September 8, include a 50% tax on construction essentials like steel, wood, and aluminum.

According to Adrian Cain, CEO of the Lowcountry Home Builders Association, the tariffs will raise costs for homebuyers in South Carolina. 'That's built up the supply chain that essentially means those products have flowed back and forth,' he said. Canada produces a lot of specialty lumber, including compressed plywood materials and headers for doorways.

The local building industry is bracing for a financial impact, with Cain saying challenges are stacking due to increased interest rates, supply chain disruptions, and now tariffs. 'I'm concerned because tariffs paired with our high interest rates create downward pressure on the housing market in a time when the Lowcountry, we need 60,000 to 80,000 homes today just to create equalization in our community,' he said.

Frank Hefner, professor of economics at the College of Charleston, agrees that supply chain disruptions will extend beyond construction and affect multiple sectors of the US economy. 'This creates uncertainty and there's clearly a shock effect,' he said. 'Relative size to the US economy, not that big, apparently, which is why some economists are saying this will not necessarily be inflationary.'