The 25% tariff on Canadian imports is set to take effect on Tuesday, raising the total duty on Canadian softwood lumber to nearly 40% when combined with the existing 14.5% rate. The National Association of Home Builders (NAHB) warns that the increased costs will drive up construction expenses and further strain housing affordability. The organization had previously urged the administration to exempt building materials from the tariffs, citing their critical role in residential construction.
Canadian softwood lumber makes up a significant share of U.S. homebuilding materials, and more than 70% of key construction supplies, including lumber and gypsum for drywall, are sourced from Canada and Mexico. NAHB argues that the tariffs will discourage new development and push home prices higher for consumers.
NAHB Chairman Carl Harris condemned the decision, stating that it directly contradicts an executive order issued on President Trump’s first day in office, which directed federal agencies to take action to lower housing costs and boost supply. In a letter to the administration, NAHB warned that the tariffs would slow residential construction by increasing material costs, further pressuring an already struggling housing market.
