WASHINGTON -- After repeatedly saying that the U.S. didn't need Canadian lumber and numerous repeated threats to add to import taxes to a big chunk of U.S. wood supply, lumber has been left out of Trump's tariff blitz. When President Trump announced reciprocal tariffs on a list of dozens of countries, lumber, composite wood panels and related products and other USMCA-compliant goods from Canada and Mexico were exempted.

Trump, who said he had the authority to issue the sweeping round of tariffs against its global trading partners under the International Emergency Economic Powers Act of 1977 (IEEPA), said the plan imposes 10% tariffs on goods imported into the U.S. from most of the world's remaining countries. These tariffs are scheduled to go into effect at 12:01 a.m. EDT on April 5, 2025. In addition to the base tariff, additional reciprocal tariff will be imposed on dozens of countries with the largest trade imbalances with the U.S. 

For instance, according to the National Lumber and Building Materials Dealer Association, goods originating from China, which have been subject to a 20% tariff, will see a new 34% increase that will be layered onto the previously announced tariffs making the combined rate 54%. 

While USMCA-compliant goods from Canada and Mexico are exempt, Trump said that Canada and Mexico are still subject to a 25% tariff on steel, aluminum, automobiles, and goods not compliant under USMCA. 

According to Annex II released by the White House, many wood and wood-related products, including specific species, plywood, MDF, OSB and other engineered woods are exempted. 

Still, the tariffs will "undoubtedly raise some construction costs, according to a statement from the National Association of Home Builders (NAHB). According to a report in the Washington Post, the broad tariffs Trump announced Wednesday will add about $6,400 to the cost of building an average house. The report, citing UBS analyst John Lovallo figures, that assumes that about 7% of the materials are imported and subject to an average incremental tariff of 22%, as well as a 5% bump in the price of domestically produced materials.

"These price increases could be tough for consumers in an already tight demand environment with big affordability challenges," Lovallo told the paper.