How Potential Trump Tariffs Could Impact Toronto Home Renovations
In a time of shifting global trade dynamics, tariffs imposed by U.S. President Donald Trump could have implications beyond international relations—potentially reaching into the everyday lives of Canadian homeowners and contractors. While materials usually account for just 15–20% of the total cost of a renovation, even slight increases in their prices can affect a project’s overall affordability and scope.
This article breaks down how potential Trump-era tariffs could influence residential renovation projects in Toronto, offering insights into both direct and indirect effects, and how homeowners can stay prepared.
Why Tariffs Matter in Home Renovations
During his first term, Trump introduced aggressive trade policies, including tariffs on steel and aluminum—two essential materials in residential construction. If similar tariffs are reintroduced or expanded, we could see a rise in material costs, even here in Canada.
Although not all renovation supplies are directly imported from the U.S., many pass through or originate from American suppliers. The result? Increased prices due to global supply chain reactions, even for items sourced domestically.
Material Costs: Small Share, Big Impact
In a standard renovation budget, 15–20% is typically allocated to materials like:
Structural Components (steel framing, aluminum siding)
Finishes (flooring, cabinetry, tiles)
Essentials (drywall, insulation, fasteners)
For example, in a $100,000 renovation, material costs might range from $15,000–$20,000. If tariffs lead to a 20% increase in these costs, that could mean an extra $3,000–$4,000—enough to force changes in project scope, design choices, or supplier selection.
Could Labour Costs Be Affected Too?
Labour accounts for the lion’s share of renovation budgets—roughly 80–85%. Tariffs won’t directly raise wages, but they can create inflationary pressure that trickles down.
Here’s how:
Supply Chain Disruptions: Delays and shortages can drive up material demand and prices.
Inflation: If overall living costs increase, skilled trades may demand higher wages.
Increased Renovation Demand: If new home construction slows due to costs, more homeowners may renovate instead—raising demand for skilled workers.
Still, unless broader inflation hits Toronto hard, labour costs are likely to remain steady in the short term.
Strategies for Homeowners and Contractors
While you can’t control international tariffs, there are ways to soften their impact:
1. Source Locally or Internationally (Outside the U.S.)
Look for Canadian-made materials or global suppliers not affected by U.S. trade policies.
2. Plan Ahead and Lock in Pricing
Secure materials and contractor agreements early to avoid future price spikes.
3. Be Flexible with Materials and Design
Consider phasing renovations, repurposing materials, or swapping in lower-cost options if needed.
4. Stay Informed
Follow trade news and industry trends. If tariffs seem likely, moving up your timeline could save thousands.
Final Thoughts
While Trump-imposed tariffs might lead to a rise in material costs, the overall impact on Toronto renovations will likely remain moderate—unless they contribute to widespread inflation and rising labour costs.
The key takeaway? Stay proactive. By planning ahead, exploring alternative suppliers, and keeping a pulse on trade news, both homeowners and contractors can navigate uncertainty and keep renovation projects running smoothly.
Got questions about planning your renovation in today’s economic climate? Leave a comment or reach out—we’re happy to help. 🛠️🏡
