Home buyers and renovators could soon face higher lumber prices. President Donald Trump has announced that a tariff on Canadian lumber could go into effect as early as April 2nd, 2025, making it difficult for nonprofits like Green Country Habitat for Humanity.
What’s happening with lumber prices?
- In February 2025, President Trump said aboard Air Force One that he was considering a 25% tariff on Canadian lumber.
Why is this tariff being proposed?
- President Trump has been imposing tariffs on goods coming into the U.S. from Mexico and Canada as part of his strategy to hold both countries accountable for issues like illegal immigration and drug trafficking.
- The proposed 25% tariff on Canadian lumber is meant to boost U.S. lumber production and sales.
How could this tariff affect local builders?
- Local developers could see increased costs, especially non-profits like Green Country Habitat for Humanity.
- Cameron Walker, the CEO of Green Country Habitat for Humanity, explains that their mission could be at risk if lumber prices rise significantly.
How could this affect Green Country Habitat for Humanity?
- Green Country Habitat for Humanity plans to build 90 to 100 homes this year, but an increase in lumber prices could force them to scale back their plans.
- Walker said this could result in fewer homes being built, which ultimately means fewer families in need of housing would be helped.
"If prices jump 25%, 50%, ultimately there will be a point where things snap and we have to reduce the number of houses that we build which inevitably is less families that we can serve," Walker said.
What do experts say about the overall impact of tariffs on construction?
- According to a survey by the National Association of Home Builders, tariffs on construction materials, including lumber, could add about $9,000 to the cost of building a home.