A new 25% tariff on Canadian lumber, along with other goods including Mexican products, has home builders worried about increased costs for central Ohio homes. However, the impact may be minimal compared to labor and land costs.
The Trump administration announced a reprieve of the Mexican tariffs but paused the Canadian tariffs earlier in the week. Home builders and dealers fear higher prices due to the tariffs, which could add $1,000 to $3,000 to the cost of new homes.
About 30% of softwood lumber used in the US comes from Canada, mainly for house framing. Lumber prices have risen to a two-year high but are still below pre-2020 levels. Other construction materials like gypsum and metal products have increased more significantly.
The National Association of Home Builders says tariffs on building materials can increase construction costs and discourage development, ultimately leading to higher home prices for consumers. The NAHB has called on the Trump administration to reconsider the tariffs, urging policymakers to eliminate barriers that make housing more costly.
Source: https://eu.dispatch.com/story/business/2025/02/03/what-trump-tariffs-on-canadian-lumber-mean-for-columbus-home-prices/78179103007