Lumber, construction material prices could rise due to tariffs
The Big Money Show panelists discuss the fentanyl crisis and President Donald Trumps tariff plans as China vows to retaliate.
President Donald Trump's plan to impose a 25% tariff on goods from Canada and Mexico triggered warnings from several trade groups that such a move would drive up the cost of housing, given that a significant amount of key building materials are sourced from our neighboring nations.
Although the president agreed to hit pause on those tariffs for a month after both countries offered concessions to help secure the U.S. boarder, the threat of a surge in prices is looming over several industries.
Home builders and materials suppliers are warning that tariffs on goods from Canada, China and Mexico will drive up construction costs and worsen the housing affordability crisis. (Photographer: Jordan Vonderhaar/Bloomberg via Getty Images / Getty Images)
Following Trump signing the executive order, the National Home Builders Association urged the president to reconsider, with NHBA Chairman Carl Harris noting that «More than 70% of the imports of two essential materials that home builders rely on — softwood lumber and gypsum (used for drywall) — come from Canada and Mexico, respectively.»
Days later, the trade group warned lumber costs would spike by 40% – even higher than the 25%, – if the tariff on softwood lumber products from Canada is imposed, because the tariffs would be on top of an effective 14.5 duty rate already in place.
HOME AFFORDABILITY CRISIS TAKING A TOLL ON AMERICA'S YOUNG ADULTS
CFRA Analyst Ana Garcia wrote in a note this week that U.S. logging has declined in recent years, and if the tariffs on Canada go through, American logging might not be able to fill the gap.
A major of softwood
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