U.S. Steel Tariffs Drive Down Canadian Rental Prices

A trade war between Canada and the United States has triggered a decline in Canadian rental prices, with average national asking rents dropping 4.8% over the past year. According to a report by Rentals.ca and Urbanation, the decline is most pronounced in cities with high tariff exposure, such as Oshawa, where rents fell 10.8%.

The downturn follows a cycle of protectionist measures where the Federal government of the United States imposed a 50% tariff on steel, which the Treasury Board of Canada matched with a counter-tariff. These measures increased construction costs for structural steel and metal, specifically hindering high-rise development in Toronto and Vancouver.

Beyond construction, the trade conflict has severely disrupted the labor market. Statistics Canada reported the loss of 40,600 manufacturing jobs across the country in 2025, including 27,200 in Ontario. This combination of job losses and economic uncertainty has forced property owners in industrial hubs to lower rents or offer concessions to attract tenants.