Lumber tariff talk could impact Arizona’s housing crisis
PHOENIX (AZFamily) — Homebuilders and their suppliers are forced to make tough decisions regarding the possibility of tariffs, including a price adjustment now or possibly absorbing the cost later.
President Donald Trump imposed tariffs of 25% on Canadian and Mexican goods on Tuesday. Then on Thursday, he said he’d delay tariffs on products covered by the United States-Mexico-Canada agreement.
The back-and-forth is causing volatility in lumber prices. “Sometimes you’ll hear some negative things, it’s always from outside countries. America will be very strong. If I’m an outside country, they’re going to do fine, but they can’t do like they used to do,” he said.
The National Home Builders Association is calling on the president to drop tariffs on lumber, saying they will exacerbate the ongoing housing affordability crisis. Softwood lumber and gypsum, which is used for drywall, are largely imported from Canada and Mexico.
Doug Ford, Premier of Ontario, said he’s skeptical that President Trump will delay the tariffs for a month. “He said that before and he switched his mind a few days later. Once I touch the stove and get burned once, I don’t touch the stove again. He needs to drop all tariffs,” said Ford.
The NAHB issued a statement reading:
The association said that if the new tariffs on Mexico and Canada go into effect next month, they are projected to raise the cost of imported construction materials by more than $3 billion.
The White House issued an executive order to expand American timber production. According to the NAHB, nearly 72% of imported sawmill and wood products are from Canada.
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