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Tariff Update: Canadian Lumber Exempt from New U.S. Tariffs—A Win for Builders

tariff update

On April 2, President Trump announced a new global tariff policy imposing a 10% baseline tariff on imports from most countries, with elevated rates up to 50% for certain nations. Notably, Canada and Mexico are exempt from these new tariffs, a significant relief for the U.S. homebuilding industry. Canada supplies approximately 85% of U.S. softwood lumber imports, a critical material for construction. This exemption helps avoid additional costs that could have further strained housing affordability.​

While this is a positive development, existing tariffs on Canadian lumber remain at 14.5%, and there is potential for increases later this year due to ongoing investigations. Builders should also anticipate continued volatility in material pricing as the market adjusts to the new tariff landscape.​

The National Association of Home Builders (NAHB) continues to advocate for policies that support housing affordability and supply chain stability. For more detailed information, please refer to the full NAHB article.​