A Challenge for the Construction Industry

President Donald Trump’s recent decision to impose a 25% tariff on softwood lumber imports from Canada has raised concerns across various economic sectors in the United States. In particular, the construction industry warns that this measure will drive up material costs and make access to affordable housing more difficult.

Increase in Construction Costs

The National Association of Home Builders (NAHB) has warned that these tariffs “will make construction more expensive and slow down the development of new projects, impacting both homebuyers and developers.” Experts highlight that lumber is a key building material, meaning its price hike could immediately translate into higher costs for new homes.

Impact on Consumers

A report from the Center for American Progress (CAP) estimates that these tariffs could result in an additional annual expense of up to $1,500 per household, not only due to the rising cost of housing but also because of its effect on other wood-derived products.

Moreover, the increase in construction costs could slow investment in the real estate sector, impacting job creation and reducing access to affordable housing for millions of Americans.

Canada’s Response and Rising Trade Tensions

The measure has further strained trade relations between the United States and Canada. Prime Minister Justin Trudeau described the tariffs as “harmful to consumers and businesses in both countries” and warned that they could trigger economic retaliation.

As the primary exporter of lumber to the U.S., Canada has expressed concern, stating that these tariffs will significantly harm both the industry and workers in both nations. Additionally, they warn that the rising cost of lumber will further exacerbate the already pressing housing affordability crisis in the United States.