Design and Construction Report staff writer
The National Association of Home Builders (NAHB) has called on the Trump administration to grant an exemption on tariffs for key construction materials, warning that tariff hikes will exacerbate the already sky-high costs of building homes in the U.S. The association argues that new tariffs, combined with ongoing supply chain issues, will “slow down the domestic residential construction industry.”
NAHB officials say the exemption is needed because the construction industry relies heavily on an efficient and cost-effective supply chain for materials such as lumber, steel, gypsum, and aluminum. With Canada and Mexico supplying nearly 25% of the materials used in U.S. homebuilding, the association warns that additional tariffs would push material costs even higher.
The NAHB also cautioned Trump that tariffs would delay reconstruction projects, particularly in regions recently affected by natural disasters, the letter cautioned.
In a news release, the NAHB said more than 70% of U.S. imports of softwood lumber and gypsum come from Canada and Mexico. The group urges President Trump to reconsider these tariff policies, citing that the additional 25% tariffs would add to the already existing 14.4% tariff on Canadian softwood lumber, driving the total duties on these products to nearly 40%.
“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,” Carl Harris, NAHB chairman, said in a statement. “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.”
In Canada, the British Columbia Lumber Trade Council (BCLTC) is also warning that the new duties would disrupt the supply chain and further inflate building material prices, at a time when affordability is a pressing issue for many American families.
“The Canada-US lumber trade is mutually beneficial. American demand exceeds domestic supply, requiring U.S. builders to import about 30% of their lumber needs,” said the BCLTC in a statement. “Canadian producers fill most of this gap, ensuring a stable, predictable supply of quality lumber. Tariffs disrupt this essential supply chain, increasing building material costs.”
With softwood lumber exports from Canada declining in recent years, particularly to China, the BCLTC fears the prolonged tariff measures could lead to further job losses and economic instability in the region. According to the BCLTC, British Columbia’s lumber industry supports more than 100,000 jobs and contributes billions to the provincial economy.
The NAHB will continue pushing for tariff exemptions, to avoid “significant ramifications for both the U.S. homebuilding industry and the broader North American lumber market.”
