NC home builders, lumber suppliers brace for impact of tariffs on Canada, Mexico

Yahoo

06-03-2025

RALEIGH, N.C. (WNCN) — New tariffs on Canada and Mexico have companies in North Carolina bracing for potential impacts, especially builders and their suppliers. A lot of lumber comes from Canada, and could now be taxed at more than 50%.
'There's a lot of unknowns with the administration in which way they plan on going forward with the tariff plan,' said Steven Webb, Director of Legislative Affairs for the North Carolina Home Builders Association.
Home builders and suppliers in North Carolina are less than thrilled with Trump administration's new 25% tariffs on goods from Canada and Mexico.
'Best case here: Quick resolution to the to the tariff issues, and we can move on,' Webb said.
Webb said there are a few key products in home building that could be impacted by the tariffs.
'You're going to see probably an issue with Canadian soft lumber, [which] goes into framing. Also, gypsum and lime come out of Mexico, so that could be an issue as well,' he said.
The good news is that Webb says over 90% of home building supplies are made in the U.S. and will not be impacted by tariffs.
However, an important supply, Canadian lumber, is already taxed and has been for years. Some of those taxes could be set to increase, separate from the new tariffs. The National Lumber and Building Material Dealers Association estimates that, with the tariffs, lumber could be taxed as high as 51%.
'We really don't know,' Webb said. 'But we know when there's additional cost, that's always going to be passed on to the consumer, unfortunately. So the consumer could see higher prices,' he said.
Uncertainty around tariffs is also a challenge for builders dealing with price fluctuations.
'You're buying your framing packages months in advance so by the time you buy the framing package, the price of the final home may change,' he said.
Webb adds he is hoping for this to be over quickly.
'We would like to see a trade deal worked out that will benefit the consumers,' Webb said. 'Let's bring down the cost of all the materials which can help bring down the cost of housing.'
Webb is also hoping to see lumber production in the U.S. ramp up. He said that will help keep costs down and prevent any supply chain issues.
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