B.C. contractors say drywall tariffs will hurt consumers most

B.C.contractorssay new tariffs on drywall material are another factor that will keep the price of single-family homes in the province out of the reach of many.

About a week ago, the Canadian government imposed duties of up to 276 per cent on drywall imported from the U.S. in an effort to help Canadian producers.

But Phillip Hochstein, president of the Independent Contractors and Business Association of B.C., says the contractors who use those products will get hammered by the new taxes.

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"It's very disappointing. Not only does it affect home owners, but anyone who is buying construction services," he told On The Coast guest host Gloria Macarenko.

"Really, it's a measure that affects the competitiveness of our jurisdiction of British Columbia. We're already a very expensive place to live, this just adds unnecessarily to the cost of that."

Hochstein says the tariffs could add $2,500 to $3,000 to construction costs of a home.

In its preliminary statement of reasons, the Canadian Border Services Agency writes they found " evidence that gypsum board originating in or exported from the US, imported into Canada ... has been dumped," meaning the products are being sold below normal prices.

The CBSA looked into the situation because of a complaint from an Ontario gypsum board producer, and Hochstein suspects Canadian drywall producers simply aren't efficient enough.

He also questions why Western Canada should be forced to buy gypsum from Eastern Canada when the U.S. has long been the source of gypsum.

With files from CBC Radio One's On The Coast