Last weekend, Trump announced a temporary 25% tariff on Canadian and Mexican goods, alarming homebuilders dependent on these imports. Following minor concessions regarding border security, the tariffs were paused for a month. This is crucial for builders, as they rely heavily on imports; for instance, 72.9% of sawmill products came from Canada in 2024. However, these pauses are temporary, and without a long-term solution, prices may rise swiftly, as observed with recent spikes in lumber prices when tariffs were implemented.
According to data from John Burns Real Estate Consulting, homebuilders imported 31% of their sawmill products in 2024, with 72.9% coming from Canada.
When the Canadian tariffs went into effect, the price of lumber immediately spiked, showing the rapid impact of tariffs on consumer prices.
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