
The NAHB is urging the Trump Administration to consider exempting building materials from the proposed tariffs on Canada and Mexico because of their potential harmful effect on housing affordability.
In a letter to President Trump, the NAHB expressed concerns the proposed 25% tariffs on Canada and Mexico will slow down the domestic residential construction industry and counteract efforts to solve the affordability crisis and housing shortage.
“On President Trump’s first day in office, he issued an executive order directing departments and agencies to deliver emergency price relief by pursuing actions to lower the cost of housing and increase housing supply,” NAHB chairman Carl Harris said in a statement on the across-the-board tariffs. “This move to raise tariffs by 25% on Canadian and Mexican goods will have the opposite effect. More than 70% of imports of two essential materials that home builders rely on—softwood lumber and gypsum (used for drywall)—come from Canada and Mexico, respectively.”
In the letter to the President, the NAHB said inputs to residential construction have seen price increases of just over 30% since January 2021. At the same time, Canada and Mexico represent nearly 25% of building material imports.
“Imposing additional tariffs on these imports will lead to higher costs, which will ultimately be passed on to home buyers in the form of increased housing prices,” Harris wrote in the letter. “Further supply chain disruptions from increased tariffs coupled with increased demand for materials could also hinder rebuilding efforts in areas affected by natural disasters, which you have pledged to help rebuild as quickly as possible.”
Harris and the NAHB urged the Trump Administration to “reconsider” its action on tariffs.
“We will continue to work with policymakers to eliminate barriers that make housing more costly and prevent builders from boosting housing production,” Harris said.