Official notice suggests that even non-CUSMA-compliant products now cross into Canada tariff-free
The federal government removed more counter-tariffs on American goods than it had initially disclosed.
According to an order-in-council published online, all Canadian retaliatory tariffs—except those targeting the steel, aluminum, and auto sectors—were quietly eliminated last month. This appears to contradict earlier statements from Prime Minister Mark Carney, who had committed to removing counter-tariffs only on United States goods “specifically covered under Canada-US-Mexico Agreement (CUSMA).”
The official notice, dated August 29, suggests that even non-CUSMA-compliant products now cross into Canada tariff-free, a policy shift that has not gone unnoticed by industry stakeholders.
While the government’s move may streamline compliance and reduce costs for importers, the lack of clarity around policy changes and the absence of public consultation have left some in the mortgage and financial sectors calling for greater transparency.
Shifts in trade agreements and tariff policies can influence lending conditions, risk assessments, and borrower confidence, particularly in export-reliant regions.
Many building materials, such as lumber, drywall, appliances, and fixtures, are imported from the US. If tariffs on these goods are removed, Canadian builders and developers may see lower input costs. This could ease pressure on construction budgets and potentially slow home price increases.
Meanwhile, lower construction costs could encourage more building activity, potentially increasing housing supply over time. This could help address chronic shortages in some markets, which is a key concern for mortgage professionals and borrowers alike.
A more stable and predictable trade environment may also boost business and consumer confidence, supporting demand for mortgages and real estate investment.
Still, tariffs and ongoing economic uncertainty are making it harder for homebuilders in Canada, especially in Ontario, said Kevin Lee, CEO of the Canadian Home Builders’ Association, in an interview with Canadian Mortgage Professional.
According to the Financial Accountability Office of Ontario, the province lost 38,000 jobs in the second quarter of 2025 as tariffs hurt local industries. Ontario’s unemployment rate also rose for the ninth straight quarter, reaching 7.8%.
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