This is a wake-up call for Canada and a moment in which she could and should pave her own way on the global stage rather than continuing to follow suit of its’ neighbour to the south which clearly has a madman at the helm. We know that recovery from the Covid pandemic was long and hard, but only two weeks into the USA’s presidency, it is regrettably clear that it will take much longer to recover from a Trump presidency.

Although Tactless Thug Trump and his surrogates are cloaking this as a war on drugs and not a trade war, we examine below how the anticipated Tariffs will impact the Canadian real estate market as we prepare to diverge and part ways from our historic trade relations.

• • Consumer Confidence: buyers will be cautious when making their next home purchase with uncertainty surrounding job security.

• • Material Costs: tariffs on imports will make any materials sourced from the states exponentially higher both in terms of new home construction and renovation costs.

• • Supply chain issues: “MexiCanada” expanded trade partners which no longer rely on the USA.

• • Priced out: higher material costs translates to higher home prices and higher home prices could freeze out many buyers from the market.

• • Overall Canadian Economy: the real estate industry is tied to the overall strength of the economy and high tariffs will result in a slowdown in the housing market and will have a direct impact on Canada’s economy.

Canadians know that these tariffs and retaliatory measures will be bad for both the USA and Canada’s economies of scale but we also know that Trump’s second week in power is indicative of how fraught the next four years will be under a Trump presidency. We encourage the Canadian government to consider the following measures to help absorb the impact and help bolster our economy’s resiliency:

• • Tax Incentive: the government should provide more tax relief by way of an increased HST rebate on new home purchases.

• • First Time Home Buyers: increase the provincial and municipal land transfer tax rebates to first time home buyers of eligible resale homes.

• • Foreign Buyer Ban: with the enactment of the Prohibition on Purchase of Residential Property of Non-Canadians Act in January 2023 and the extension on prohibition until January 2027, Non-Canadians are precluded from purchasing residential real property. The government should consider the feasibility of lifting this ban and examine other forms of restrictions on foreign buyers in terms of rent controls, vacant home declarations, and more stringent examination of the source of funds to bolster the growth of the Canadian economy, whilst supporting affordable housing for Canadians and ensuring that homes do not sit empty.

On an individual scale, Canadians have stepped up to the challenge and we applaud the unification of everyone to support one another with their purchasing power to buy Canadian only goods and services.

Nonetheless, while we will continue to be dumbfounded at the ridiculousness of these tariffs we hope that Thug Trump will stop being a bully and learn how to play nice-nice with others in the playground, but until then, let us not forget that Canada is a G7 country with one of the largest and most dynamic economies on the planet and we will adapt. We are Canadian and we stand together strong and proud in support of one another!