Steel and aluminum tariffs could impact buyers of homes and commercial spaces

With tariffs on steel and aluminum products coming from the United States now in effect one expert is saying B.C. consumers can expect to feel the impact when buying homes and commercial space.

Chief Economist with the Independent Contractors and Businesses Association (ICBA) Jock Finlayson says if tariffs stay companies will pass on the cost increase to consumers in order to cover expenses.

“[Companies] will try and pass those cost increases on to whoever the ultimate consumer or purchaser is” he tells 1130 NewsRadio. “Whether it’s somebody buying a new condominium, or somebody leasing office space, or someone looking to lease or purchase a new warehouse or whatever they’ll be upward pressure on the prices they’re going to have to pay.”

While tariffs have yet to kick in, Finlayson says the uncertainty around them is damaging to the economy.

“We’re already seeing softness in business investment; we’re seeing softness in the real estate market, and I attribute that very much to the uncertainty that flows from this evolving trade war,” he says.

While B.C. has local sources of aluminum, most of the province’s steel is imported from the U.S.

Finlayson says the increased cost of steel, which is used in a lot of infrastructure projects, could be felt by the consumer as the price of homes and commercial property increases.

“And eventually the users and consumers will be the ones who end up paying not the construction companies so it will add to inflation,” he says.