As tariffs on imports from Canada and Mexico have paused, the threat of increased tariffs still loom, including those on lumber and other materials used in homebuilding. The National Association of Home Builders is urging President Trump to exempt "critical construction materials" from these tariffs. 

"...We respectfully ask that you consider the effects of tariffs on Americans struggling to afford housing and that you exempt critical construction materials from such actions," said Carl L. Harris, 2024 Chairman of the Board, NAHB.

Harris, in a letter penned to Trump, said that the housing industry relies heavily on a diverse and cost-efficient supply chain for building materials such as lumber, steel, gypsum and aluminum. Builders, wrote Harris, rely on components produced abroad, with Canada and Mexico representing nearly 25% of building materials imports. 

"Imposing additional tariffs on these imports will lead to higher material costs, which will ultimately be passed on to home buyers in the form of increased housing prices," he said. The country, he said is facing a severe housing shortage and affordability crisis.

"Further supply chain disruptions from increased tariffs coupled with increased demand for materials could also hinder rebuilding efforts in areas affected by natural disasters, which you have pledged to help rebuild as quickly as possible."

Trump had signed an Executive Order mandating 25% tariffs be placed on all imports from Canada and Mexico, but that order was put on hold for 30 days after a deal was brokered with the two countries agreeing to put money and manpower at their respective borders to stem illegal immigration and the influx of fentanyl into the U.S.

Pointing to Canadian exports to the U.S., the NAHB says tariffs would be greater than the 25% tariff on softwood lumber products that Trump wants to impose. The NAHB said the new tariffs would be on top of the existing 14.5% duty rate, meaning that the overall effective Canadian lumber tariffs will rise to nearly 40%.

Of $8.5 billion worth of sawmill and wood products imported in 2023, nearly 70% of these imports came from Canada. Many of these imports are already subject to a 14.5% antidumping and countervailing duties (AD/CVD) tariff. Total imports of sawmill and wood products from Canada totaled $5.8 billion.