Tariffs on building materials like softwood lumber, gypsum, and steel are increasing construction costs, driving up home prices and harming housing affordability. In 2023, the U.S. used $184 billion in materials to build single-family and multifamily homes, with $13 billion – approximately 7% – sourced from imports. Proposed new tariffs on materials from Canada, Mexico, and China could further increase costs by $3–4 billion, making homeownership less attainable for many families, according to the National Association of Home Builders (NAHB).
Softwood lumber and gypsum, key materials in home construction, are heavily imported from Canada and Mexico, respectively. Of the $8.5 billion spent on sawmill and wood products last year, 70% came from Canada, totaling $5.8 billion, with imports already subject to a 14.5% antidumping and countervailing duty (AD/CVD). Meanwhile, $352 million worth of gypsum was imported from Mexico, representing 71% of total U.S. gypsum imports. Proposed tariffs would further inflate the price of these essential goods.
Beyond lumber and drywall, materials like steel, aluminum, and home appliances – much of which are sourced from China – already face significant tariffs under Sections 301 and 232. If additional tariffs ranging from 10% to 20% are enacted, as proposed during the Trump administration, the added costs would directly impact builders and, ultimately, homebuyers.
The National Association of Home Builders (NAHB) warns that widespread tariffs will exacerbate inflationary pressures and raise home prices by tens of thousands of dollars, pricing many families out of homeownership. Before implementing further tariffs, policymakers are urged to carefully assess their economic impact, particularly on an already strained housing market.
