The U.S. is set to increase tariffs on Canadian softwood lumber from 14.5% to 39.5% on April 2, with potential hikes exceeding 50% by fall. The National Association of Home Builders (NAHB) warns that these tariff increases will push lumber prices higher, raising construction costs and impacting housing affordability.
If the new tariffs take effect next month, the cost of imported construction materials is projected to rise by more than $3 billion. NAHB reports that higher lumber costs could increase the price of an average new single-family home by $7,500 to $10,000. The Department of Commerce has also signaled plans to roughly double the existing 14.5% tariff later this year, possibly in September, which could push the total tariff rate on Canadian lumber above 50% and approach 60%.
The U.S. currently imports about 30% of its softwood lumber supply, mostly from Canada. The tariff hikes would further limit supply and drive prices higher, worsening affordability concerns. The White House issued two executive orders on March 1 to address lumber supply challenges. The first order aims to expand domestic timber production, while the second directs an investigation into whether timber and lumber imports threaten national security.
NAHB has called for increased domestic sawmill production but warns that current capacity is insufficient to meet demand. The organization continues to push for tariff relief and policy changes to stabilize lumber prices and ease pressure on the housing market.
