Trump's Tariffs and Their Impact on Canadian Flooring and Renovation Material Prices

Trump announces sweeping tariffs on major trade partners

Donald Trump announced sweeping tariffs on major trade partners and struggling countries alike. Trump’s new policies set a baseline tariff of 10% on all goods coming into the US, Marking the biggest upheaval of global trade norms since the second world war. 

However, Canada was exempted from these latest tariffs. Despite this, the country still faces steep levies on critical materials, including a 25% tariff on steel and aluminum, which came into effect at midnight Eastern Time.

Impact on Flooring and Renovation Material Prices in Canada

1. Steel and Aluminum Tariffs

• Canada continues to face 25% tariffs on steel and aluminum, essential materials for construction, including structural supports, fixtures, and flooring materials.

• The increased costs will likely be passed down to builders, renovators, and homeowners, raising the price of renovation projects across the country.

2. Lumber Prices and Supply Chain Disruptions

• Canada was spared from new tariffs, but existing softwood lumber duties range from 8.59% to 20.23%, significantly increasing costs for flooring materials like engineered hardwood and plywood.

• The average price of softwood lumber in Canada is up 35% compared to early 2024 due to persistent trade disputes and supply chain constraints.

• Plywood, a key material in subflooring and renovations, has seen a price jump of over 15% year-over-year.

• Many builders rely on imported luxury flooring materials from Europe and Asia, which now face additional U.S. tariffs. This could reduce overall supply and drive up costs for Canadian consumers.

3. Inflation and Consumer Impact

• The tariffs add to overall market uncertainty and inflation, causing fluctuating material costs.

• Homeowners and businesses looking to renovate should anticipate price increases and possible project delays as supply chains adjust to the new trade landscape.

Conclusion

While Canada's exemption from the latest tariffs provides temporary relief, the continuing 25% tariffs on steel and aluminum will keep renovation costs high. With the United States-Mexico-Canada Agreement (USMCA) up for review in July 2026, future negotiations could further reshape trade policies, impacting material costs for the construction and renovation industry. As these discussions approach, businesses and consumers should stay alert to potential price shifts and policy changes.