In a post updated as of 9 a.m. ET on March 7, 2025 by the National Association of Home Builders (NAHB), it was stated that, The situation surrounding tariffs remains fluid, with a flurry of activity in Washington this week. On March 4, President Trump imposed tariffs of 25% on Canadian and Mexican goods entering the U.S. and slapped an additional 10% tariff on Chinese products, which follows an initial 10% tariff last month.
Then on March 6, Trump announced a one-month tariff delay until April 2 on all products from Mexico and Canada that are covered by the United States-Mexico-Canada Agreement (USMCA), a free trade treaty that Trump negotiated in his last term to replace NAFTA. While there is no specific language in the USMCA addressing Canadian softwood lumber, NAHB worked with the White House to ensure it was covered under the latest pause on tariff implementation.
Two essential materials used in new home construction, softwood lumber and gypsum (used for drywall), are largely sourced from Canada and Mexico, respectively. Additionally, numerous raw materials and components, ranging from steel and aluminum to home appliances, are sourced from China and are already subject to existing 301 and 232 tariffs, which add increased costs to construction that are ultimately passed on to consumers in the price of a home.
