The exemption of Canadian lumber from the Trump administration’s latest round of global reciprocal tariffs is being celebrated as a key victory.
The housing sector has scored a temporary reprieve from new tariffs—but builders warn that the overall construction cost outlook remains bleak despite the win.
The exemption of Canadian lumber from the Trump administration’s latest round of global reciprocal tariffs is being celebrated as a key victory for housing, but the National Association of Home Builders (NAHB) says new tariffs on other building inputs could still drive up prices nationwide.Why It Matters
While the lumber exemption helps avoid immediate shocks in one essential house building material, NAHB is sounding the alarm about broader consequences of the new tariff policies.
Builders estimate that tariffs already in place have raised the cost of constructing an average home by $9,200, according to the March 2025 NAHB/Wells Fargo Housing Market Index.
Housing prices are often looked at as a key marker in economic stability.What To Know
President Donald Trump announced a sweeping 10 percent baseline tariff on nearly all U.S. trading partners last week, with elevated rates as high as roughly 50 percent on some nations.
Canada and Mexico were excluded from the new tariff structure—which was a crucial development, as Canada supplies about 85 percent of U.S. softwood lumber imports.
„NAHB is pleased President Trump recognized the importance of critical construction inputs for housing and chose to continue current exemptions for Canadian and Mexican products, with a specific exemption for lumber from any new tariffs at this time“, NAHB Chairman Buddy Hughes said in a statement.
However, the larger housing market could still face bad news.
