Trade Dispute Means Higher Lumber Tariffs Likely to Impact Housing Costs

By Phil Crone
Executive Officer, Dallas Builders Association

Amidst a market defined by rampant inflation and material shortages, builders should now prepare for duties (tariffs) on Canadian lumber to double from 8.99 to 18.32 percent.

While relatively few boards of Canadian lumber find their way to North Texas, the move by the U.S. Commerce Department is likely to have negative impacts across the market since Canadian lumber comprises around 25 percent of the overall supply. 

According to Random Lengths, a leading information source for the wood products industry, Canadian producers may try to send as much lumber across the border as they can before the higher duties kick in. “We’ll ship as much as we can across the border ahead of time, but that’s about it,” one producer said.

Other producers are taking a wait-and-see approach to see if the Commerce Department follows through with the higher tariff and how expected challenges to the duty play out. NAHB has repeatedly appealed to Commerce Secretary Gina M. Raimondo and President Biden most recently sent the letter, linked here, urging the Administration to hold off on the tariff hike and to resolve a yearslong lumber dispute with Canada. 

Canadian markets will likely feel the impact as well. They do not consume nearly as much lumber as they produce, due to reliance on exports to the U.S. and their options to ship product elsewhere is encumbered by ongoing impediments in the global supply chain 

The Dallas Builders Association continues to convey our concerns about material pricing and availability to our local Congressional delegation and will keep members apprised of the Commerce Department’s final decision which is expected on or around November 23, 2021.