Tariffs can play a significant role in and already shaky housing market

President Donald Trump Tariffs have caused rising lumber prices that warn homebuilders will increase construction costs and lead to more expensive housing consumers.

This week, the lumber prices have reached the highest level in two and a half years, and lumber futures have grown more than 14% today against the backdrop of tariffs. These developments come after Trump has signed the executive order earlier this week, having launched a national security investigation “vulnerability in the supply chain from imported wood, lumber and their derivatives that are being released on the US market.”

This investigation can lead to an increase in anti -dumping Tariffs on Canadian lumber It is imposed later this year. This would be in addition to 14.5% anti-dumping and anti-syordinal tariff on the Canadian Forest Tree, which operated before Trump returned to the White House in January, and 25% of the Canadian import tariff, including the lumber, which came into force on March 4, which pushed the total tariff for almost 40%.

Despite the fact that Trump also issued an order for expanding internal hatching, higher tariffs in Canada – a dominant source of lumber imports in the United States – caused concern about building builders about higher cost materials that affect the availability of housing for Americans.

Trump issues executive orders concerning the production of lumber, national security problems

Home builders warn that President Trump’s tariffs for Canadian lumber will raise costs for buyers. (Angus Mordant / Bloomberg via Getty Images / Getty Images)

The National Association of Builders House (NAHB) noted that in 2023 the US imported about $ 8.5 billion on sawmill and wooden products, almost 70% of these imports (or $ 5.8 billion) Comes from Canada.

NAHB Chairman Carl Harris issued a statement on Trump’s tariffs, which announced: “On the first day of President Trump, he issued an executive order that manages departments and agencies to ensure emergency assistance assistance while continuing to reduce housing and increase the supply of housing.

“Lumber tariffs and other building materials increase construction costs and interfere with new development and Consumers end up paying For the tariffs in the form of higher housing prices, “Harris explained, adding that the Trump administration should review the tariffs and instead eliminate barriers that make housing more expensive and hold back production.

Prices for building materials can rise from -wit tariffs

Canada is a source of about 70% of the import of lumber in the US, exposing a higher cost of home construction. (Mario Tama / Getti Image / Getti Image)

A A Beza Book of the Federal Reserve – Regular report, which studies modern economic conditions across the country through 12 regional districts of the Fed, as well as the national resume – was published on Wednesday and included comments that emphasized the concerns of the enterprises about higher costs of lumber from the tariffs.

“Construction activity modestly decreased for both residential and non -residential units. Some contacts in this sector also expressed nervousness around the influence of potential tariffs on the price of lumber and other materials,” the national resume of the Fed said.

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President Trump issued an executive order aimed at expanding the production of domestic lumber, although it is unclear how quickly it could affect supplies. (Mario Tama / Getti Image / Getti Image)

Four of 12 regional banks, including Richmond, St. Louis, Kansas -Sity and San Francisco, referred to the problems Higher prices For lumber and other building materials in February, when they expected the tariffs came into force.

“Contacts in Construction of residential real estate Discussions on escalation provisions during the negotiations in recent weeks, when builders and investors have sought protection against the expected materials that were worth the growth of lumber and metals they attributed to changes in trade policy, ” – explained the Fed Cancer -Sity.

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“Similarly, the lenders said they became more attentive to the risks associated with the potential increase in materials during the Anderraiting process,” it added.