How Will Trump Tariffs Affect Canada Housing and Cottage Market?

 

If you've been keeping up with the news, you may have heard about U.S. President Donald Trump's plan to impose a 25 percent trade tariff on Canadian goods. Now that this policy could be our reality, many Canadians—including Kawartha/Highlands home buyers and sellers—are wondering: How will Trump's tariffs affect housing in Kawartha/Highlands?

Let's break it down in simple terms and see if this tariff could affect housing prices, mortgage rates, and the overall affordability of homes in Kawartha/Highlands.

What Is a Trade Tariff, and Why Does It Matter?

A trade tariff is essentially a tax that one country imposes on imported goods from another country. In this case, Trump's proposed 25 per cent tariff would apply to various Canadian exports, making them more expensive for U.S. buyers.

Canada exports a lot of materials that are crucial for housing, such as lumber, steel, and aluminum. If the U.S. stops buying as much from Canada, those industries could slow down, affecting jobs and economic growth.

How Will Trump Tariffs Affect Canada Housing? It Could Make Homes More Expensive

At first glance, you might think a tariff on Canadian exports shouldn't affect housing prices in Kawartha/Highlands. However, tariffs can cause a chain reaction:

• If U.S. demand for Canadian lumber and steel drops, Canadian suppliers may reduce production or cut jobs.

• With fewer exports, Canadian companies may raise prices on local materials to make up for lost revenue.

• Construction costs could go up, leading to higher home prices for new builds and renovations.

What About Mortgage Rates?

When it comes to mortgages, how will Trump Tariffs affect Canada housing? The Bank of Canada keeps a close eye on economic changes, and tariffs can slow down the economy. If businesses struggle because they can't sell as much to the U.S., this could lead to job losses and lower consumer confidence.

To stimulate the economy, the Bank of Canada might lower interest rates. This could be good news for home buyers, as lower interest rates mean cheaper mortgages.

However, if the economy slows too much, banks may also tighten lending rules, making it harder to qualify for a mortgage.

Could This Lead to a Housing Market Slowdown?

If job losses increase due to weaker exports, some homeowners may be forced to sell, adding more homes to the market. In this scenario, we could see a temporary dip in home prices, especially in areas where job markets are hit hardest.

However, our housing market has historically been resilient. Demand remains high due to immigration, population growth, and a strong rental market. Any slowdown could be short-lived, especially if interest rates drop and buying becomes more affordable.

Should Kawartha/Highlands Buyers and Sellers Worry?

Still wondering how will Trump Tariffs affect Canada housing? For now, there's no need to panic. The real estate market is strong, and while tariffs could cause some ripples, they're unlikely to crash the housing market. It could do the opposite. The market could boom.

If you're a buyer, this could be a great time to watch for opportunities—especially if prices stabilize or interest rates fall. If you're a seller, understanding the market's movements and pricing your home strategically will be key.

Final Thoughts

When you think about how will Trump Tariffs affect Canada housing, global events, like trade tariffs, can have unexpected effects on the local real estate market, but smart buyers and sellers stay informed and plan ahead.

While the full impact of these tariffs remains to be seen, it's important to stay up-to-date on the latest market trends and economic indicators. By understanding how external factors can influence the housing market, you can make more informed decisions when buying or selling a home.

Whether you're a first-time buyer, a seasoned investor, or a homeowner looking to sell, keeping a close eye on the market and working with a knowledgeable real estate professional can help you navigate the potential challenges and opportunities that may arise from Trump's trade policies.

Remember, the Canadian housing market has weathered storms before, and with the right strategies and a bit of foresight, you can position yourself to thrive, even in the face of global economic uncertainties. Stay informed, stay vigilant, and trust in the resilience of the Kawartha/Highlands real estate market.

Brought for you by:

Your local Realtor®

If you are looking to either Buy or Sell, contact me at 705-927-6236

Brad Sinclair, Sales Representative

Team Lead at The Brad Sinclair Team

Royal Heritage Realty

Your inside source to cottage country

The Trump Effect on our Real Estate Market-Ever Changing

 

What's Happening in the Markets?

It has been a crazy few days. Lots of things are changing on the fly. Things could change back to normal, change to better times and relationships, or just to all-out war. This is how volatile American politics are with Donald Trump steering the ship, and we are just here for the ride.

I read an article that the Bank of Canada might need to lower interest rates to keep Canada afloat with a prolonged trade war. This means higher inflation. It also could spark another COVID-type real estate buying frenzy.

Remember the beginning of Covid, where I was preaching that the market would not fall, but most comments on my social media told me I was wrong and real estate prices would drop in half? Is this the same scenario?

Tariffs and Trade Wars

The 25% U.S. tariffs on Canadian goods and 10% tariffs on Canadian energy are enacted. The feds responded with 25% counter-tariffs affecting $30 billion worth of goods to start and $125 billion worth of goods three weeks later.

There are no two ways about it; the trade war will cause economic chaos, with a hit of up to 4.2 percentage points to Canada's annual GDP on the table. The pain began yesterday, with the loonie dropping below $0.69 and the TSX cratering after Trump said the tariffs were a go.

The path to ending the trade war is murky, with Trump saying there's "no room left" to negotiate. Even after launching a $1.3 billion plan to strengthen border security and appointing a fentanyl czar, Canada still hasn't done enough, in his eyes. 

The head of the Canada Border Services Agency told the Globe and Mail that it was unclear what else the agency could do to change Trump's mind. 

Let’s face it. Stop the bulcrap. This has nothing to do with the border. This is a broader plan from Donald Trump that we, as Canadians, have no idea what he is trying to really accomplish.

Canada's Retaliation

So, Ottawa announced 25% retaliatory tariffs on $30 billion worth of U.S. imports, including coffee, beer, apparel, and cosmetics. The tariffs will expand in three weeks to another $125 billion worth of goods, likely including categories like produce and autos. 

Donald Trump responded with a Truth Social post threatening tariff increases, but the commerce secretary later said Trump might soon announce ways Canada could earn tariff relief.

While the immediate economic shocks of the tariffs are already being felt, the trade war is also stoking national unity. Many provinces are looking at ways to reduce trade barriers, support Canadian businesses, and hit the U.S. where it hurts. 

Provinces like Manitoba, Ontario, B.C., Newfoundland and Labrador, and Nova Scotia are pulling some or all U.S. booze from provincially run liquor store shelves.

Ontario Premier Doug Ford said that cutting off electricity imports, cancelling a Starlink deal, and legislating the promotion of Canadian products by retailers were all on the table.

New Brunswick and Nova Scotia were uber-aggressive, barring U.S. companies from bidding on provincial contracts. Nova Scotia also doubled tolls for U.S. commercial vehicles.

These retaliatory measures show that Canada is not backing down without a fight. The trade war is quickly escalating, and there's no telling where it will go. One thing is for sure - the economic and political ramifications will be felt for a long time.

As a real estate professional, I'm monitoring how these developments impact the housing market. Will the threat of higher inflation and economic instability lead to another real estate buying frenzy, similar to what we saw at the start of the pandemic? Or will the uncertainty and financial strain lead to a slowdown in the market?

Only time will tell, but one thing is certain - these are truly unprecedented and volatile times. My followers of real estate news will want to stay tuned for the latest updates and insights. Feel free to reach out to me directly if you have any questions or would like to discuss the situation further. I'm here to help navigate these uncertain waters.

Brought for you by:

Your local Realtor®

If you are looking to either Buy or Sell, contact me at 705-927-6236

Brad Sinclair, Sales Representative

Team Lead at The Brad Sinclair Team

Royal Heritage Realty

Your inside source to cottage country

Find out what you don’t know-Phrases you didn’t know came from boating

 

A Boating Blog for Cottagers

Slang and Cottage Terms

As a cottager, you've likely heard (and used) many of these nautical terms in your day-to-day life. From describing the perfect weather as "hunky-dory" to telling your kids to "pipe down" when they're getting a little too rowdy, these phrases have become ingrained in our cottage culture.

But have you ever wondered where they came from? Many of these sayings have their roots in the rich history of seafaring and sailing. By understanding the origins of these nautical expressions, we can gain a deeper appreciation for the language we use and the stories they tell.

Take "bamboozle," for example. This term was once used to describe the cunning tactics of pirates, who would fly the flags of friendly nations to lure unsuspecting ships into their traps. Today, it's a common way to describe when someone has been fooled or deceived. The meaning may have evolved, but the underlying idea of trickery and deception remains.

Or consider "feeling blue." This phrase harkens back to the days when a ship's crew would paint a blue stripe or fly blue flags to signify the death of a captain or officer. While the specific nautical context may be less familiar to modern cottagers, the idea of feeling somber or melancholic still resonates.

And then there's "under the weather." This expression refers to the practice of sailors taking shelter in the ship's base during a storm, shielding themselves from the elements. Today, it's a figurative way of saying someone is feeling ill or unwell, but the original connection to seeking refuge from the harsh realities of life at sea is still evident.

As you sip your Caesar and gaze out at the calm waters of the lake, take a moment to appreciate the rich tapestry of nautical language that has become woven into our cottage culture. These words and phrases not only add a touch of seafaring flair to our everyday conversations but also serve as a reminder of the enduring connections between our land-locked lives and the vast, unpredictable oceans that have shaped so much of human history.

So, the next time you find yourself "running a tight ship" at the cottage or "learning the ropes" of a new outdoor activity, remember the proud nautical roots that underpin these familiar expressions. And who knows, maybe you'll even be inspired to try your hand at "tying a knot" or two - just don't forget to "batten down the hatches" first!

Bamboozle

Describing pirates who would deceive other ships by flying friendly nation flags, the meaning of "bamboozle" hasn't changed - it is still used when someone is fooled or cheated.

Feeling Blue

Used when a captain or officer died on the ship, the crew pained a blue stripe or flew blue flags to signal respect. Today, its meaning is similar but not exactly the same.

Under the Weather

When a storm would hit, the crew would hide out in the ship's base until the storm passed, meaning they were "under the weather." Today, it is a figurative way of saying someone is sick.

All Hands on Deck

This was a command for the crew to gather and help navigate the boat in a storm.

That Ship Has Sailed

You've missed the ship's departure and will not be able to catch another until next week - too bad for you. Today, it means you've lost your opportunity.

Batten Down the Hatches

Prepare for bad weather - get the "battens," planks of wood, to prevent water from entering the boat.

Sink or Swim

A morbid term used when suspected witches were captured to determine whether they were guilty or innocent of witchcraft. Either way, witch or not, the suspect would die due to drowning or be executed by officials. Today, it much less means face your fears to either succeed or fail.

Runs a Tight Ship

When the ropes were tight, this signaled that the captain was in control of the boat and crew. Today, it's a term to describe being organized.

Pipe Down

A signal to the crew to pipe down the hammocks and go to sleep. Today, it's a saying to tell your kids when they are being a little too rowdy.

Hunky-dory

Some sayings like 'hunky-dory' never die. One theory links this funky phrase to Honcho dori, a road in 1876 Japan, where sailors would go for some fun. Fast-forward to present times, we guarantee that your cottage dad also uses hunky-dory to describe the perfect day he just had.

Taking a Different Tack

Today, we use this phrase to describe finding another way to tackle a given situation. This comes from a nautical term that refers to finding another way to navigate the boat through wind in order to travel in a certain direction.

Learn the Ropes

A sailor would need to literally learn the location and use of the ship's ropes in order to be a successful member of the crew. Nowadays, it is more broadly used to mean getting acquainted with the skills and basics for a new setting, usually as a first step to being a helpful part of the team (which at a cottage could include using rope to tie a knot—but only if you really want to).

Bottom's Up

Did you know that men used to be tricked into joining the navy? Recruiters would put coins at the bottom of beer glasses, and when the unsuspecting sailor got to the coin, it was deemed that they'd taken payment for joining the Royal Navy. A drinking mate would say "bottom's up" to hint that a friend should check the bottom of their glass to avoid the coin. Presently, there's no tricks at play—just a clink! And a lighthearted "bottom's up," as we cheers our homemade Caesars to a great weekend at the cottage.

Brought for you by:

Your local Realtor®

If you are looking to either Buy or Sell, contact me at 705-927-6236

Brad Sinclair, Sales Representative

Team Lead at The Brad Sinclair Team

Royal Heritage Realty

Your inside source to cottage country