The National Association of Home Builders (NAHB) has taken credit for Trump delaying tariffs on softwood lumber (from Canada) and gypsum used in drywall (from Mexico) for at least another month after securing White House guarantees that both would be included in the new pause.
It comes after Wood Central reported that tariffs on $3b worth of US-bound Canadian lumber were suspended yesterday afternoon—despite assurances that Trump would eventually impose “a tremendous tariff on lumber”—after lumber prices peaked at a 30-month high on Tuesday.
According to the NAHB, the problem is that the tariffs—now slated to come into effect on April 2—coupled with tariffs already applied to Chinese goods (under 301 and 232 tariffs) and projected hikes to duties on Canadian lumber, will lead to a $3 billion increase in the cost of imported construction materials:
“NAHB has received anecdotal reports from members that they are planning for tariffs to increase material costs between (US) $7500 and (US) $10000 on the average single-family home,” the NAHB said.
Hours ago, the National Association of House Builders – a body representing thousands of house builders across the United States – published a statement addressing the pause on tariffs.
And whilst it welcomes Trump’s push to eliminate barriers for domestic lumber production and salvage, it argues that it is still insufficient to meet demand: “For years, NAHB has been leading the fight against tariffs because of their detrimental effect on housing affordability. In effect, the tariffs act as a tax on American builders, home buyers and consumers.”
In February, the NAHB reported that construction costs now account for (almost) two-thirds of house prices – the highest since records were kept, with the cost of timber frame and truss one of the only material costs that have progressively reduced (as a proportion of total cost) over 30 years.
Earlier this year, Russ Taylor, a Vancouver-based timber consultant, said it was impossible for the US to “go it alone” and meet housing demand with just local timber. “As for whether the US can “go it alone” and meet demand just with local timber, “the bottom line (is that) the US need Canadian lumber and OSB; (and) Canada needs the US lumber and OSB market,” Taylor said in January. “Canadian exports of MDF and particleboard go to the US (98% of total exports) whilst plywood exports to the US represent about 3% of US consumption.”
- To learn more about Donald Trump’s plans for self-sufficiency in lumber production, click here for Wood Central’s exclusive report from yesterday. To find out more about the Secretary of Commerce’s new probe into lumber imports on National Security grounds, click here.
