In a significant development for the U.S. housing industry, President Trump announced on April 2, 2025, the imposition of a 10% baseline tariff on all of America’s trading partners, with the notable exceptions of Canada and Mexico. This decision is particularly impactful as Canada supplies approximately 85% of U.S. softwood lumber imports, constituting nearly a quarter of the nation’s available supply. The exemption of Canadian lumber from these new tariffs is expected to mitigate potential cost increases in home construction and support housing affordability.
While this exemption provides immediate relief, existing tariffs on Canadian lumber remain at 14.5%. The Department of Commerce is currently conducting anti-dumping and anti-subsidy investigations, which could lead to increased duties later this year. Despite these ongoing challenges, the current decision to exclude Canadian lumber from additional tariffs is seen as a positive step toward stabilizing material costs in the construction industry.
The National Association of Home Builders (NAHB) has expressed approval of the administration’s recognition of the importance of critical construction inputs. NAHB Chairman Buddy Hughes stated that while the complexity of reciprocal tariffs makes it hard to estimate the overall impact on housing, the continuation of current exemptions for Canadian and Mexican products, including lumber, is a welcome development. NAHB continues to advocate for policies that support the housing market and address affordability concerns.
