Inspired by Dr. Sherry Cooper’s Analysis
We’re living in fascinating times for Canada–U.S. relations, especially with President Donald Trump making strong statements about trade partners. Want the quick lowdown on his latest comments—and what Dominion Lending’s Chief Economist, Dr. Sherry Cooper, has to say about it all? Check out this brief video to stay in the loop:
A Positive Outlook Amid Uncertainty
Talk of tariffs can spark anxiety—especially when it comes to large, interconnected economies like Canada and the United States. Recently, Dr. Sherry Cooper, Chief Economist at Dominion Lending Centres, explored how proposed tariffs under a new U.S. administration might affect Canadian industries. While the initial announcements did raise concerns, the good news is that full-scale tariffs have been placed on hold, offering an opportunity to prepare and adapt rather than react in crisis mode.
Why Tariffs Matter for Housing
When tariffs rise, they can increase manufacturing costs, disrupt supply chains, and dampen economic growth—factors that may ripple through the housing market. For example, slower growth might affect job stability and consumer confidence, which in turn can influence real estate demand and mortgage approvals. However, Dr. Cooper’s analysis points out that certain key Canadian exports (like oil or specialized metals) are less likely to face tariffs due to the U.S.’s reliance on them. This interdependence helps stabilize markets and eases the immediate threat of a major economic downturn.
High-Exposure vs. Resilient Sectors
According to Dr. Cooper’s insights, if tariffs were implemented, the automotive and primary metals industries could feel the impact most acutely—yet these sectors have historically found ways to adapt through negotiation and trade deals (like USMCA). Meanwhile, areas less dependent on direct exports—many service-based industries—may see fewer disruptions. Even for industries that do rely heavily on U.S. trade, Canada’s ability to supply crucial resources means both parties have incentive to avoid a prolonged trade war.
Short-Term Relief, Long-Term Preparedness
One highlight of Dr. Cooper’s analysis is that immediate tariffs are not on the table—at least not yet. This pause allows Canadian businesses to strategize, government officials to negotiate, and economists to refine their forecasts. For the housing market, it means more time to adjust to any changes without a sudden spike in consumer uncertainty. Buyers and homeowners can continue with their plans, keeping an eye on economic indicators but not necessarily hitting the panic button.
What It Means for You
- If You’re a Homeowner: Stay informed, but don’t let dire headlines overshadow your personal circumstances. Market slowdowns can sometimes create opportunities (like lower competition), and Canada’s fundamentals remain strong.
- If You’re House Hunting: Keep looking. Talk to a mortgage professional if you’re concerned about interest rates or your job security. Preparation is always the best strategy, and clarity can replace anxiety when you understand the bigger picture.
- If You’re an Investor or an Industry Professional: Diversifying your portfolio and keeping abreast of policy updates is wise. Canada’s economy has shown time and again it can pivot swiftly when needed.
Final Thoughts
Dr. Sherry Cooper’s research reminds us that while tariffs could pose challenges, Canada and the U.S. share deep economic ties—making an all-out trade war less likely. Even if certain sectors face added costs, the integrated nature of North American supply chains encourages both sides to negotiate solutions that avoid major disruptions. For anyone concerned about the potential ripple effects on real estate, now is the perfect time to seek professional advice, understand your options, and maintain a proactive stance rather than a reactive one.
Disclaimer: This blog is based on insights from Dr. Sherry Cooper’s original analysis. If you have specific questions about how shifting trade policies might affect your mortgage or housing plans, reach out to our team. We’re here to guide you toward informed, confident decisions—no matter what tariff talk is trending.