Tariffs Raising Material Costs

A contractor can lock in a roof shingle quote on Monday and watch the framing package change by Friday, because one of the fastest-moving costs in construction right now is trade policy, not labor. Royal Bank of Canada said tariff-driven price pressure is showing up in trade-exposed goods, including steel and building materials, even when the broader economy looks steadier on the surface. (rbc.com) The clearest number landed in softwood lumber. The United States Commerce Department’s preliminary review set a combined anti-dumping and anti-subsidy duty rate of 24.83% on Canadian softwood lumber, which means imported boards can arrive with a government charge roughly equal to one-quarter of their declared value. (trade.gov) That charge matters because Canada is not a side supplier in this market. The National Association of Home Builders says Canada accounts for roughly 85% of all United States softwood lumber imports and almost one-quarter of total United States softwood lumber supply. (nahb.org) So when lumber duties rise, builders are not choosing between Canadian wood and a giant spare pile of identical American wood sitting next door. They are bidding in a market where a big slice of the normal supply suddenly becomes more expensive, and that pushes quotes around even before a house is framed. (nahb.org) The same pattern shows up in steel-related categories. Royal Bank of Canada said sectors with direct tariff exposure saw larger price effects than the rest of the economy, which helps explain why items tied to metal fabrication, structural components, and imported inputs can move differently from headline inflation. (rbc.com) Trade cases also work on a long clock, which keeps the uncertainty alive. The Commerce Department reviews these anti-dumping and countervailing duty orders annually, so importers, mills, distributors, and builders can spend months pricing jobs while the final rate is still not settled. (trade.gov) That is why a “budget blowout” on a project can start with paperwork in Washington rather than a shortage at a sawmill. If a supplier thinks the duty bill on future shipments could change, the safe move is often to widen the quote, shorten how long it stays valid, or add contingencies. (trade.gov, rbc.com) Home builders are already putting dollar figures on that pressure. The National Association of Home Builders said its April 2025 survey found builders estimated recent tariff actions added $10,900 to the cost of a typical home, and more than 60% of builders reported higher costs because of tariffs. (nahb.org) Lumber is not the whole house, but it is everywhere in one. When duties hit framing lumber while other trade actions touch steel, aluminum, appliances, and fixtures, the result is not one dramatic price spike on one invoice but a steady drip of revised numbers across the entire materials list. (nahb.org, rbc.com) So the unstable quote on a stack of two-by-fours is not random noise. In 2026, it often reflects a very specific chain: a tariff decision changes import costs, distributors reprice inventory, builders rework bids, and the final number lands in the cost of a renovation, an apartment building, or a newly built house. (trade.gov, nahb.org, rbc.com)