Lumber tariffs contributing to rising home prices | 2018-07-12

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Last year President Donald Trump imposed anti-subsidy tariffs, averaging 20%, on Canadian softwood lumber imports.

Since then, one of the top issues facing the homebuilding industry has become the increasing lack of affordability for production.

From the article:

Long before the sharp clash with Canada at the Group of 7 meeting this weekend, the Trump administration imposed tariffs on lumber imports from Canada, which American home builders use in large quantities. The United States Commerce Department contended that Canadian companies were selling lumber into the United States at unfair, subsidized prices.

Those tariffs, which took effect last year, combined with other factors to drive up the price of lumber in the United States. As a result, the anti-dumping and countervailing duties, as the tariffs are officially known, have added to the cost of housing in the United States at a time when homes are becoming less affordable. The Trump administration’s tariffs on steel and aluminum, and any others that follow, could also contribute to rising costs for businesses and consumers.

Although home prices are climbing, the pace at which homes are being built have not significantly increased, according to Eavis.

This could be attributed to lower faith in the construction market.

In June, sharply elevated lumber prices contributed to lower homebuilder confidence — slipping from 70 to 68 points, according to the National Association of Home Builders/Wells Fargo Housing Market Index.

 



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