"Urgent: Shop Now Before 25% Tariffs Take Effect!," read the e-mail from Marge Carson, a Chicago-area luxury residential furniture maker with production in Mexico. "Avoid the new 25% tariff on imports from Mexico!"

The manufacturers' marketing response was one of several statements from industry groups in regards to tariffs. Marge Carson's e-mail was sent on Friday, but if its customers don't make purchases soon, they might face those new tariff's that were imposed on Saturday, Feb. 1, when President Trump signed executive orders placing stiff tariffs on Canada, Mexico, and China, which might be setting the stage for a trade war with the United States’ largest commercial partners.

Trump said he was imposing the tariffs, which reports say go into effect Feb. 4, because of the flow of migrants and illegal fentanyl into the United States. They will remain until this flow is alleviated. “The extraordinary threat posed by illegal aliens and drugs, including deadly fentanyl, constitutes a national emergency,” according to a White House statement. The document said that China and Mexico are failing to take sufficient action against drug cartels. Canada, the release statement said, faces a “growing presence” of these cartels.

China, Mexico, and China responded by taking retaliatory measures. Canada said it would impose dollar-for-dollar tariffs, which would total $155 billion ($106 billion U.S.) worth of goods (see video below). Mexico vowed to "implement Plan B," which includes tariff and non-tariff measures. China said it plans to file suit with the World Trade Organization.

Industry responses 

“National Lumber and Building Material Dealers Association (NLBMDA) is actively involved in conversations with leaders in Washington to underscore the significant impacts a 25% across-the-board tariff would have on the LBM and residential construction industry," said NLBMDA president & CEO Jonathan Paine in a statement. “NLBMDA is leading discussions with our trade association partners including the National Association of Home Builders to advocate for responsible trade policies which do not negatively impact the U.S. housing industry.”

In the Friday statement, the NLBMDA continued, "As the United States' largest trading partner, the LBM industry depends heavily on its trade partnership with Canada for softwood lumber and other building materials imports. A recent analysis by PwC estimates tariff revenues from Canadian imports would surge from $440 million to $107 billion. 

Prior to the Executive Order, the Decorative Hardwoods Association, said it looked forward to working with the new administration on illegal trade practices. The DHA, which represents the hardwood plywood, hardwood veneer, and engineered hardwood flooring industries, said that has had to fight illegal trade from China and Vietnam in recent years.

"But our industry is also integrated with our partners in Canada, particularly veneer splicers and hardwood plywood manufacturers. We will be working with the administration to grow U.S. manufacturing of decorative hardwoods and leveraging our important partnerships in Canada so that we can grow together," said Keith Christman, president of the DHA.

The Canadian Manufacturers & Exporters (CME) is urging federal, provincial, and territorial governments to take swift and decisive action as a result of the tariffs. These tariffs, the CME said "will have an immediate and devastating impact on Canadian manufacturers and their workers.

In December, the CME surveyed more than 300 manufacturers that found business will worsen once tariffs are implemented: 48 percent of manufacturers will consider a hiring freeze or laying off workers; 46 percent will consider postponing or cancelling planned capital investments; and 49 percent will considering shifting some production to the U.S.

Housing group's 
The National Association of Homebuilders (NAHB) sent a letter to Trump on Friday, Jan. 31, asking for tariff exemptions on building materials from Canada and Mexico. 

The next day, Carl Harris, chairman of the NAHB, and a custom home builder from Wichita, Kan., who ten days earlier issued a glowing statement about the Trump's action on home relief, issued a statement that struck a different note.

“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% on Canadian and Mexican goods will have the opposite effect. More than 70% of the imports of two essential materials that home builders rely on — softwood lumber and gypsum (used for drywall) — come from Canada and Mexico, respectively."  

Builder Magazine, citing a The Freedonia Group report, said the higher prices resulting from a combination of tariffs and increased domestic demand could lead consumers to substitute for products made from cheaper materials.

U.S. lumber coalition response

On Feb. 1, the U.S. Lumber Coalition released the statement, "U.S. Lumber Coalition Rebuts Canada's Offensive To Dismantle U.S. Measures Against Unfairly Traded Softwood Lumber Imports," in which it said that the belief that tariffs will increase housing costs is "erroneous."  

"The cost of lumber only makes up about 1.3 percent of the total cost of an average new construction home, and even less in higher priced homes," explained Zoltan van Heyningen, executive director of the U.S. Lumber Coalition."So the idea that longstanding antidumping or countervailing duties or President Trump's tariffs on unfairly traded Canadian lumber imports would cause lumber prices to dramatically increase home prices is nonsensical."

"Simply put, the cost of lumber doesn't move the needle when it comes to the price of a new home. Lumber prices saw all-time highs during the COVID-19 pandemic in 2020-21. Lumber prices today are a third of those high prices, but new home prices have continued to climb," added van Heyningen.

According to the coalition, the U.S. softwood lumber industry had the practical production capacity to supply 95 percent of U.S. softwood lumber consumption in 2024.

Trading partner's response

Lumber from Canada are not the only raw material or finished product that may feel the effects  of Trump's tariffs or retaliatory tariffs.

The Canadian prime minister, Justin Trudeau, announced retaliatory tariffs starting with 25 percent tariffs on approximately $20 billion worth of U.S. goods on Tuesday, with $85 billion more to follow within three weeks. 

"Today (Feb. 1), the United States informed us they will be imposing a 25 per cent tariff on Canadian exports to the United States and 10 per cent on Canadian energy, a decision that, should they elect to proceed with, should take effect on Tuesday, Feb. 4," said Trudeau. "First I want to speak directly to Americans. Our closest friends and neighbors. This is a choice that, yes, will harm Canadians. But beyond that, it will have real consequences for you, the American people."

The prime minister’s list of products expected to be impacted by the coming tariffs include furniture and other household goods, as well as manufacturing and construction materials such as Canadian lumber and plastics would also be subject to tariffs.

China's Ministry of Commerce (MOC) called the tariffs an "erroneous action"  by the United States, and that China will file a lawsuit with the World Trade Organization and take "corresponding countermeasures to firmly safeguard its rights and interests."