Canada supplies approximately 70% of the lumber imported by the United States

Canada supplies approximately 70% of the lumber imported by the United States, and Canadian lumber is now subject to a nearly 40% tariff.

Last Friday, President Trump announced his intention to impose a 25% tariff on goods from Canada and Mexico, which includes essential materials for home construction. The National Association of Home Builders (NAHB) expressed its concerns regarding the impact on housing affordability, urging the president to exempt building materials from these tariffs. The new 25% tariff on softwood lumber from Canada adds to the existing 14.5% duty, resulting in a total effective tariff of nearly 40%, according to NAHB. In light of these developments, NAHB Chairman Carl Harris reminded President Trump of his initial executive order aimed at providing emergency price relief to enhance housing affordability and supply.

Harris, who previously praised the president's commitment to addressing housing costs, expressed disappointment over the tariff decision, stating that the increase would negatively impact housing affordability.
He highlighted that over 70% of the imports of critical materials for home builders, such as softwood lumber and gypsum, originate from Canada and Mexico.

The construction costs for new homes remain elevated compared to pre-pandemic levels, and the additional tariffs are expected to exacerbate price increases, further hindering the pace of home building.

Edited: Olatunbosun Ibrahim Akanbi