Will Tariffs Drive Up the Cost of Building Your New Home? Here's What You Need To Know

Tariffs aren’t something most homeowners think about—until they hit your wallet. With new Canadian retaliatory tariffs on the horizon, some Atlantic Canadians are wondering:Will this make building a home more expensive?

The short answer: not by much—but it depends on where your materials come from.

At Willow Tree Developments, we believe homeowners should understand what’s shaping the cost of their home—from lumber and insulation to the nuts and bolts of the foundation. So let’s break down what tariffs are, how they work, and what they actually mean for residential construction here in Atlantic Canada.

What Are Tariffs, Anyway?

A tariff is essentially a tax on goods crossing a border. If the U.S. places a tariff on Canadian products, it makes our exports more expensive for American buyers—not Canadians.

But when Canada retaliates with its own tariffs, that’s when Canadian consumers may feel the pinch—especially if we’re importing materials from the U.S.

Tariffs only impact Canadians when we import U.S. goods—and even then, the effect is smaller than you’d think.

So how big is the impact? Let’s walk through a typical home build—from the ground up—and see where tariffs could sneak in.

Foundations: A Small Slice of Tariff Risk

Most foundation costs are tied up in labour—not materials. On a $500,000 build, the foundation might cost $40,000, with half of that being materials like rebar, ties, and chemical additives.

If a 20% tariff applied to the $20,000 in materials, that would result in about $4,000 in added costs—but this is one of the few areas where U.S. products are common.

Framing and Lumber: A Local Advantage

This is one of the best news stories in Canadian construction. All the lumber we use—framing, OSB, trusses, joists—is grown and milled in Atlantic Canada.

Framing your home with locally sourced lumber means no tariff worries—and potentially even lower costs.

If the U.S. market slows down on Canadian imports, we may even see a local price dip due to extra supply.

Windows & Doors: Built Right Here at Home

Atlantic Canada is home to some of the country’s top window and door manufacturers: Kohltech, Nova Windows & Doors, Atlantic Windows, North-Air, Global, Extreme, and more.

These companies use mostly Canadian-made parts. Some American brands like Marvin or Anderson could face tariffs, but with so many high-quality local options, there’s no reason to buy American.

Siding & Exterior Finishes: Proudly Canadian

Whether you want vinyl, wood, brick, or stone veneer, you’ve got great Canadian choices:

• Vinyl: Gentek, Kaycan, Mitten

• Wood: Cape Cod, Maibec

• Stone veneer: Fusion Stone, Canyon Stone, Novik

• Brick: Shaw Brick (NS), Canada Brick (ON)

Fiber cement products are largely U.S.-based and not ideal for our climate anyway. Aluminum fascia and gutters may see minor increases, but these items make up less than 0.5% of a home’s cost—equating to about $500 extra on a $500,000 build.

Roofing: Asphalt is Safe, Metal May Vary

Asphalt shingles from IKO and BP Canada are both safe bets—Canadian-made and widely available.

Metal roofing can be tariff-exposed if U.S. materials are used. But companies like Metal Masters Inc. and Five Star Metals offer locally manufactured metal roofing using Canadian or European materials.

Plumbing: Choose Local Brands, Avoid Extra Costs

Many standard fixtures—like Moen, Delta, and American Standard—are U.S.-made and could be impacted.

But you’ve got great alternatives in brands like Riobel, Rubinet, or Grohe (from Europe). Plumbing typically represents 8% of a build, half of which is labour. So if tariffs do apply, you’re looking at a $4,000 potential increase on a $500,000 home—but it's avoidable with smart sourcing.

Electrical: No Tariffs Here

Good news—Canada’s electrical supply chain has you covered. Everything needed for residential construction is available from Canadian manufacturers, and raw materials are sourced from outside the U.S.

HVAC: Mostly Safe, Some Parts to Watch

You’ve got plenty of tariff-free HVAC options:

• Heat pumps: Senville, Napoleon, Direct Air

• Air exchangers: Venmar, Nu-Air, Fantech

Some small components might come from the U.S., but they make up less than 0.5% of your total build. That’s roughly $500 extra, if affected at all.

Insulation: American-Made, But Untouched

Yes, most insulation is American-made—especially Owens Corning for fiberglass and spray foam chemicals.

But since Canada doesn’t manufacture these products, we likely won’t place tariffs on them. That means you won’t see price hikes, even if the labels say “Made in USA.”

Drywall: Made in Canada, No Issues

Drywall is covered. Brands like CGC produce their materials domestically, so tariffs are a non-issue.

Interior Doors & Trim: Choose Wisely

• Metrie: Canadian and tariff-free

• Masonite: American, possible tariff exposure

• Jeld-Wen: U.S.-owned, but operates Canadian manufacturing

For trim, companies like Vintage Mouldings and Moulding Warehouse make high-quality products right here in Atlantic Canada.

Flooring: Sourced Worldwide, Mostly Not from the U.S.

Flooring materials tend to come from Europe and Canada:

• Hardwood: Canadian-sourced

• Tile: Spain, Portugal, Italy

• Laminate: Mix of Canadian and European suppliers

That means no tariff risk, and plenty of stylish, durable options.

Final Word: Will Tariffs Break the Budget?

Even in the worst-case scenario, a $500,000 home build might see $9,000 in additional costs due to tariffs.

But most professional builders—including us—recommend a 10% contingency budget, which typically covers unexpected costs like these.

Bottom Line:If you’re working with the right builder who understands local sourcing and smart planning, you likely won’t feel the effects of tariffs at all.

Build With Confidence

At Willow Tree Developments, we prioritize Canadian-made materials whenever possible—not just to avoid tariffs, but because we believe in supporting local businesses and building homes that last.

If you’re thinking about building and want a partner who knows how to navigate rising costs without compromising on quality, let’s talk.