Homebuilders and drywall suppliers are warning the price of new homes will go up since the tariffs on United States drywall imports into Canada were made permanent.
The Canadian International Trade Tribunal ruled on the matter Wednesday.
Preliminary duties of up to 276 per cent were tacked onto U.S. imports of drywall into western Canadian provinces and the Yukon and Northwest Territories back in September.
The duties were imposed after CertainTeed Gypsum Canada complained U.S. producers were selling drywall in Canada at lower prices than in their own country.
In a submission to the CITT, CertainTeed said the imports were damaging the Canadian industry.
Darren Chambers, Qualico’s Senior Manager of Corporate Purchasing for western Canada, said the tariffs have driven up domestic drywall prices 30 per cent in Manitoba.
Chambers estimates the move has cost Qualico hundreds of thousands of dollars across western Canada. He said right now, homebuilders and contractors are eating the costs, and now that the tariff has been made permanent the cost will be passed onto the consumer.
“Eventually with all of the other additional charges that come into play, unfortunately it gets passed onto the end user,” Chambers said. “We try to curtail as much as we can on impacts in increases in pricing but unfortunately it is the end user that ends up paying for it.”
The Manitoba Home Builders Association said the cost of the tariff could increase between $2,000 and $5,000 in some cases.
MHBA president Mike Moore said home renovations and commercial projects would also be affected.
