Turn up the volume on your real estate success at Inman On Tour: Nashville! Connect with industry trailblazers and top-tier speakers to gain powerful insights, cutting-edge strategies, and invaluable connections. Elevate your business and achieve your boldest goals — all with Music City magic. Register now.
A 25 percent tariff on Canadian and Mexican goods announced by the Trump administration on Saturday would be on top of duties already in place on Canadian lumber, meaning homebuilders could soon see the price of Canadian lumber rise by 40 percent, the National Association of Home Builders (NAHB) warned Monday.
In renewing calls that building materials be exempt from tariffs, the NAHB said more than 70 percent of imported softwood lumber and gypsum used for drywall comes from Canada and Mexico.
TAKE THE INMAN INTEL INDEX SURVEY FOR JANUARY
“On President Trump’s first day in office, he issued an executive order directing departments and agencies to deliver emergency price relief by pursuing actions to lower the cost of housing and increase housing supply. This move to raise tariffs by 25 percent on Canadian and Mexican goods will have the opposite effect,” NAHB Chairman Carl Harris said in a statement Monday.
Trump said Monday on Truth Social that the U.S. has agreed to put tariffs on Mexican goods on hold for one month after Mexican President Claudia Sheinbaum agreed to send 10,000 troops to the Southern border. Trump also said discussions with Canadian Prime Minister Justin Trudeau are ongoing.
Canada announced Monday that it plans to impose 25 percent tariffs on $30 billion in U.S. goods starting Tuesday.
“Tariffs on lumber and other building materials increase the cost of construction and discourage new development, and consumers end up paying for the tariffs in the form of higher home prices,” the NAHB said in its statement Monday. “NAHB urges the administration to reconsider this action on tariffs, and we will continue to work with policymakers to eliminate barriers that make housing more costly and prevent builders from boosting housing production.”
Editor’s note: Trudeau announced Monday evening that “I just had a good call with President Trump” and that proposed tariffs “will be paused for at least 30 days while we work together.”
