Lumber tariff clash threatens to reshape U.S. home building industry
Posted on June 16, 2025 |
The NAHB blames high tariffs and volatile lumber prices for contributing to the U.S. housing market slump.
Canada supplies about 85% of U.S. lumber imports, making up nearly 25% of the total U.S. lumber supply.
The current U.S. tariff on Canadian softwood lumber is 14.5% and could rise to nearly 35% later this year.
Lumber prices have dropped 67% between May 2021 and April 2025, reaching $442 per 1,000 board feet.
Despite falling lumber prices, new home prices have increased by 21%, highlighting broader affordability issues.
The U.S. Lumber Coalition accuses Canada of continuing unfair trade practices that hurt American producers.
Single-family housing starts fell 2.1% in April, and sales of both new and existing homes declined compared to earlier months.
