Tariffs squeeze lumber
If you’ve got a renovation on the calendar, be warned: seven Section 232 tariff orders remain in effect and the U.S. Commerce Department preliminarily set a combined anti‑subsidy and anti‑dumping duty of 24.83% on Canadian softwood lumber, which will keep material costs elevated. (rbc.com) (prnewswire.com) A congressional estimate says the U.S. has nearly 60,000 fewer home‑construction jobs since the tariff push and industry trackers report lumber prices are already nudging up as spring building demand returns — so expect renovation budgets to be tighter. (realestatenews.com) (hbsdealer.com)
A tariff fight that started in Washington is now showing up in deck quotes and framing bills. On April 9, the U.S. Commerce Department preliminarily set a 24.83% combined anti-subsidy and anti-dumping duty on Canadian softwood lumber in its seventh annual review, covering lumber imported in 2024. (prnewswire.com) That matters because Canada is not some side supplier for the United States. The National Association of Home Builders says roughly 85% of all U.S. softwood lumber imports come from Canada, so when duties rise on Canadian boards, a huge share of imported supply gets more expensive at once. (nahb.org) The new lumber duty is landing in a trade climate that is already crowded with import taxes. RBC said on April 9 that seven Section 232 tariff orders are currently in effect, including orders covering timber and lumber, alongside steel, aluminum, autos, copper, trucks, and some semiconductors. (rbc.com) Lumber prices were already starting to firm before this latest duty announcement. HBS Dealer reported on April 8 that sellers of Western Spruce-Pine-Fir in the United States were flooded with orders as spring weather restarted construction in Texas and spread into Central and Northern states, exposing tight mill supply. (hbsdealer.com) That is how a policy move turns into a renovation problem. If demand rises in April and May while imported boards face a 24.83% duty and domestic mills are already stretched, contractors have less cheap wood to bid with and homeowners get higher estimates. (hbsdealer.com) (prnewswire.com) The hit is bigger than backyard projects. A Joint Economic Committee minority report said tariffs and tariff-related uncertainty have pushed home-construction costs higher over the last year and left the country with nearly 60,000 fewer home-construction jobs than before the 2025 tariff push. (jec.senate.gov) Real Estate News reported on April 8 that the same congressional estimate ties the tariff push to a housing market that is already short millions of homes. When fewer workers are building and one of the main framing materials gets pricier, the shortage gets harder to fix. (realestatenews.com) The industry argument for these duties is that Canadian producers benefit from subsidies and unfair pricing, which is why the reviews keep happening. The U.S. Lumber Coalition said the April 9 preliminary rate confirms, in its view, that Canada continues to trade unfairly in softwood lumber. (prnewswire.com) The practical result is simpler than the trade law. A kitchen addition, a new roof, a fence, a subdivision, and an apartment building all compete for the same stacks of two-by-fours, and right now those stacks are getting squeezed by both tariffs and spring demand. (nahb.org) (hbsdealer.com)
