Introduction

Home renovations in Canada have never been more expensive, and one of the biggest culprits behind rising costs is global tariffs on essential construction materials like lumber, steel, and fixtures. Whether you’re a homeowner planning a kitchen remodel or a contractor managing a large-scale project, these tariffs are squeezing budgets and forcing tough financial decisions.

In this blog, we’ll explore:

How tariffs impact the cost of renovation materials
The specific goods affected (lumber, steel, fixtures, etc.)
The ripple effect on homeowners and contractors
Possible solutions and alternatives to mitigate costs
Expert insights and data-backed trends

By the end, you’ll understand why your renovation budget might be stretching thinner than expected—and what you can do about it.

What Are Tariffs, and Why Do They Matter for Renovations?

Tariffs are taxes imposed on imported goods, making foreign products more expensive to protect domestic industries or respond to trade disputes. While they can benefit local manufacturers, they also drive up costs for businesses and consumers who rely on imported materials.

In Canada, where construction materials are heavily imported (especially from the U.S. and China), tariffs have a direct impact on renovation expenses.

Key Materials Affected by Tariffs

1. Lumber

- Canada is a major lumber exporter, but U.S. tariffs on Canadian softwood lumber (averaging 11% but sometimes exceeding 20%) have disrupted supply chains.
- Result: Higher costs for plywood, framing lumber, and engineered wood products.
- Source: Canadian lumber hit with 34% duties even before Trump tariffs

Reddit X Share on Linkedin Open more share options Canadian lumber hit with 34%

2. Steel & Aluminum

- Canada faced U.S. Section 232 tariffs (25% on steel, 10% on aluminum) before exemptions were negotiated. However, global supply issues keep prices elevated.
- Result: More expensive structural beams, nails, and appliances.
- Source: United States Surtax Order (Steel and Aluminum 2025)

tariff on steel

3. Fixtures & Appliances

- Many plumbing fixtures, lighting, and appliances come from China and the U.S., facing tariffs due to trade tensions.
- Result: A 10-25% price hike on items like sinks, faucets, and cabinetry hardware.
- Source: List of products from the United States subject to 25 per cent tariffs effective March 13, 2025

List of products from the United States subject to 25 per cent tariffs effective March 13, 2025

The Ripple Effect: How Tariffs Increase Renovation Costs

1. Higher Material Costs for Contractors

Contractors must absorb or pass on increased costs, leading to higher quotes for homeowners.
Some contractors delay projects, waiting for price stabilization.

2. Supply Chain Delays & Shortages

Tariffs disrupt trade flows, causing delays in material availability.
Example: During the pandemic, lumber prices surged over 300% due to tariffs and supply bottlenecks.

3. Homeowners Face Budget Overruns

A kitchen renovation that once cost 30,000 may now exceed 40,000 due to pricier cabinets, countertops, and labor.
Some homeowners scale back projects or opt for lower-quality materials.

4. Impact on New Home Construction

Higher material costs also affect new builds, increasing housing prices—another burden for Canadian buyers.

Can Homeowners & Contractors Avoid Tariff-Driven Costs?

While tariffs are beyond individual control, some strategies can help mitigate expenses:

1. Source Locally When Possible

Canadian-made lumber, steel, and fixtures may avoid import tariffs.
Check for “Made in Canada” labels on materials.

2. Consider Alternative Materials

Instead of hardwood, explore bamboo or laminate flooring.
For countertops, quartz alternatives may be cheaper than tariff-hit granite.

3. Buy in Bulk or Wait for Sales

Contractors can pre-order materials in bulk to lock in prices.
Homeowners can monitor seasonal sales at hardware stores.

4. Negotiate with Suppliers & Contractors

Some suppliers offer discounts for large orders or cash payments.
Contractors may adjust labor costs if material prices fluctuate.

What’s Next? Will Tariffs Ease Soon?

Trade policies are unpredictable, but some trends suggest:

U.S.-Canada lumber disputes may persist, keeping prices volatile.
Global steel demand remains high, sustaining elevated costs.
Supply chain improvements could gradually stabilize prices.

Experts recommend budgeting an extra 10-20% for renovations to account for unexpected material hikes.

Conclusion: Navigating Renovations in a High-Tariff Era

Global tariffs are a significant factor in Canada’s rising renovation costs, impacting everything from lumber to appliances. While homeowners and contractors can’t control trade policies, they can adapt by sourcing locally, exploring alternatives, and planning for price fluctuations.

Staying informed and flexible is key—because in today’s market, a well-budgeted renovation is more important than ever.

How Global Tariffs Are Driving Up Renovation Costs in Canada