New lumber tariffs add pressure to housing

Washington, D.C.—The U.S. Commerce Department imposed new tariffs that will raise housing costs, according to the National Association of Home Builders (NAHB). Officials announced a 10% tariff on all timber and lumber imports, plus an additional 25% tariff on kitchen cabinets and furniture. The department said imports of these materials pose a national security risk.

The new tariffs take effect Oct. 14. Tariffs on furniture will rise to 30% on Jan. 1, 2026. Kitchen cabinet levies will double to 50% on the same date.

“These new tariffs will create additional headwinds for an already challenged housing market by further raising construction and renovation costs,” said NAHB chairman Buddy Hughes.

The U.S. imports about one-third of the lumber it uses because domestic production falls short of demand. Canada supplies nearly 85% of U.S. lumber imports. In recent weeks, the Commerce Department more than doubled duties on Canadian lumber from 14.5% to 35%. Today’s action adds another 10%, pushing the total to 45%.

The tariffs fall under Section 232 of the Trade Expansion Act of 1962. The law allows the president to impose trade restrictions if the government deems imports a threat to national security.

While the 10% tariff on lumber will raise construction costs, the rate is lower than other Section 232 tariffs.

The policy aims to protect U.S. lumber producers. However, data from the first quarter show domestic sawmills are running at only 64% of their capacity. That figure has declined steadily since 2017. Experts say it will take years for domestic output to catch up with demand. In the meantime, imports remain essential to build, remodel and repair homes and apartments.

The NAHB said it opposes the tariffs. The group is urging the administration to boost timber supply from public lands in an environmentally responsible way. It also wants the U.S. to quickly negotiate with Canada and other trading partners to resolve disputes and remove tariffs on lumber and other building materials.

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