How Much More Will Your Home Renovation Cost? Tariffs and Canadian Construction in 2026
Canadian home renovation costs are up 15–25% due to tariffs on lumber, steel, aluminum and cabinets. See what's hit hardest and how to save.
Planning a kitchen renovation? Adding a deck? Building a new home? The tariff war has added $15,000 to $40,000 to the cost of a new build in Canada and pushed renovation costs up 15–25% across the board.
The reason isn't one tariff — it's a web of overlapping duties on virtually every material that goes into a house. Lumber, steel, aluminum, cabinets, windows, doors, fasteners, appliances. Each one carries its own tariff and they stack on top of each other in ways that make even a modest bathroom reno noticeably more expensive.
The Tariffs Hitting Canadian Construction
What Your Renovation Actually Costs More
The Hidden Cost: Derivative Tariffs
The December 2025 expansion of Section 232 to 407 steel derivative products is the one most people don't see coming. It's not just raw steel that's tariffed at 50% — it's finished products that contain steel. That means the screws holding your deck together. The hinges on your cabinet doors. The nails in your framing. The steel brackets supporting your shelves.
A box of steel screws on TariffCharts' Basket of Tariffs™ went from $13.99 to $19.59 — a 40% increase on something every renovation project needs dozens of boxes of.
Where Canadian Builders Can Find Relief
- Source Canadian-made lumber and fixtures. Domestic lumber avoids US Section 232 tariffs entirely.
- Check material origins carefully. Tariffs are based on where goods are manufactured, not where you buy them.
- Time your project if you can. Section 122 (10% baseline) expires July 24, 2026. Some material costs may ease.
- Watch the January 2027 cabinet increase. Cabinet tariffs rise from 25% to 30–50% in January 2027. Order before that date to save thousands.
- Explore CBSA Duties Relief for contractors. Remissions available through the CBSA Duties Relief Program for qualifying imports.
Unlike Section 122, which sunsets in July 2026, the tariffs on steel, aluminum, lumber and automobiles are permanent until explicitly removed. No current trade deal has exempted metals.