The American dream of owning a white-picket-fenced home is quietly being priced out - brick by brick, beam by beam. And no, this time it’s not inflation or rising mortgage rates to blame but tariffs it is, with a maple twist.
According to the Canadian Chamber of Commerce, tariffs imposed on Canadian construction materials can potentially incur an additional cost of USD 10,000 to building a home in the United States by 2027, given some of the key construction materials used in building a house come from Canada. Such as 70 per cent of the lumber used in the US residential buildings, 25 per cent of iron and steel, and 18 per cent of copper.
What more? Aluminium, which is widely used in the residential construction sector in US, comes from Canada, is tariff-stricken too. In 2024, the United States had secured 3.36 million tonnes of aluminium from Canada, which accounted for 65 per cent of US tariffs. In the first four months of 2025, the imports stood at 1.09 million tonnes, albeit down by 7 per cent Y-o-Y, accounting for 54 per cent of the United States total aluminium imports, yet remained the largest exporter of the metal to the US.
Canada’s aluminium exports currently face 50 per cent tariff imposed by Trump administration, effective June 4, 2025. Besides being raised from the initial 25 per cent, the tariff policy also underwent a redesign to ensure consumers pay more. The new system prioritises:
- Section 232 of the US Trade Expansion Act (read: aluminium/steel auto parts),
- Over the border-security tariff under the International Emergency Economic Powers Act (IEEPA).
Translation? If aluminium is taxed, it’s taxed hard. No border tariff exemptions here.
Aluminium usage in US residential buildings
More than 2 billion pound of aluminium is used in the United States’ residential buildings. For 2024, the projection for usage was about 2.4 billion pound of aluminium extrusion and flat products, returning to early-to-mid-2000s level, driven by the shift toward surban living and contemporary commercial projects, modular construction and increased use of accessory dwelling units, and aluminium substitution for vinyl, as outlined in the market study by John Burns Real Estate Consulting (JBREC).
Already, due to tariffs, the US aluminium imports from Canada have decreased. If this continues, there could be a potential dearth of the metal in the market, resulting in price surge due to the mounting demand.
End-user consumers again at receiving end
History has repeatedly shown that tariffs, even when masked as geopolitical strategy, ultimately take a toll on everyday households. The report, titled Building trouble: How US tariffs on Canadian construction materials are pricing out the American dream, suggests that duties on foreign construction materials have already added up to USD 6,000 to the cost of building a single-family home in the US between 2018 and 2024. With the new tariffs, the additional cost is projected at USD 10,000 to 14,000 by the end of 2027, bringing the total added cost from tariffs to USD 20,000 per home.
Although the White House has always maintained that the cost of tariffs should be borne by foreign exporters and not American consumers, yet 60 per cent of domestic home builders surveyed in April have already experienced tariff-related cost surges, showed the National Association of Home Builders (NAHB).
It’s not just homes but everyone feels the burn
From cars, beverage cans to luxury goods, all have witnessed the ripple effects of US tariffs on aluminium and steel. Whether packaging brands like Coca Cola and Pepsico or luxury cosmetics brands like Estée Lauder and L’Oréal, all have felt a tariff pinch.
Food manufacturer Conagra Brands, which packages items such as Hunt’s tomato products and Chef Boyardee pasta in aluminium cans and foil trays, has reported a 7 per cent year-over-year rise in input costs attributable in part to the tariffs. As a result, it has lowered the full-year earnings forecast and accelerated cost-cutting initiatives to offset these pressures. Similarly, Rivian, the US startup known for its electric trucks and SUVs, announced cuts in its 2025 production targets from an initially planned 50,000 vehicles to between 40,000 and 46,000 units, given the increased capital expenditure as foreseen, from USD 1.6 billion to nearly USD 1.9 billion.
Starry-eyed homebuyers, soda sippers, and aspiring EV owners are lastly at the receiving end. So, next time you see a house listing and thinking, “Why so expensive?” - remember: some of that cost is 50 per cent Canadian aluminium, heavily taxed and heavily passed on.
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