In a major win for the homebuilding industry, President Trump’s newly announced global tariff policy includes key exemptions that will help keep construction costs in check. An article published by the NAHB (National Association of Home Builders) says this is a relief for both builders and homebuyers.
As the article explains, on April 2, the President announced a 10% baseline tariff on all U.S. trading partners, with higher rates—up to 50%—for certain countries that heavily tax American goods. However, Canada and Mexico, two of the U.S.’s most important suppliers for homebuilding materials, are exempt from these new tariffs.
Further explanation from NAHB reveals that Canada supplies about 85% of the U.S. softwood lumber imports and nearly a quarter of the total U.S. lumber supply. There has been a longstanding countervailing tariff on these imports. While there is no new tariff, the existing tariff rate on Canadian softwood lumber currently stands 14.54%. The continued exemption of Canadian lumber from these new tariffs is a major victory for homebuilders. Lumber is a foundational building block, and this decision helps protect against even steeper cost hikes.
Mexico’s exemption is also key, as the country provides critical building materials such as gypsum, concrete, and home appliances. These materials are often more affordable due to Mexico’s proximity and established trade routes with the U.S.
While the exemptions are good news, the broader tariff move means there will be some cost increases and market volatility, especially for goods sourced from Asia. For example, new tariffs on Chinese goods could exceed 50% in some categories, hitting appliances, metals, and other supplies hard.
Still, the decision to keep Canadian and Mexican building materials out of this new tariff structure softens the blow for housing. According to the NAHB, about 7.3% of goods used in home construction in 2024 came from other countries, so keeping these vital North American partners free from new tariffs helps mitigate the potential shock.
The decision to spare Canadian and Mexican construction materials from new tariffs is a meaningful win for builders, housing affordability, and anyone hoping to buy a new home. While uncertainty remains around other imported goods, the NAHB’s efforts and this exemption help keep the housing market on more stable footing.
For the time being, this is a bit of good news in the ongoing effort to keep homebuilding costs manageable. We know the cost of construction materials is a key consideration for our contractors and homeowners, and AVO is always working to keep those costs low.
AVO Fence & Supply is a provider of high-quality fencing materials and supplies with locations in Stoughton, Hingham, and Plymouth. We are the leading supplier of cedar in the New England area. Give us a call today at (781) 341-2963.