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Lumber tariff clash threatens to reshape U.S. home building industry

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.