U.S. Softwood Lumber Duties Expected to Drive Up Housing Costs South of the Border
TORONTO – American families could soon face steeper housing prices as the United States raises duties on Canadian softwood lumber imports. Industry groups and Canadian officials warn that the increase will not only hurt Canadian producers but also exacerbate housing affordability issues in the U.S., where construction costs are already under pressure.
The new preliminary duty rate, announced by the U.S. Department of Commerce, will jump to 13.86%, up from the current 8.05%. Canadian officials, including International Trade Minister Mary Ng, have criticized the duties as “unfair, unjust, and illegal” under international trade rules. Canada continues to push for a negotiated settlement.
President Trump’s tariffs on Canadian lumber will increase the cost of American homes. His tariffs on Canadian autos will mean more expensive American cars and pickup trucks. His tariffs on Canadian pharmaceuticals will increase the cost of drugs for seniors on fixed incomes. pic.twitter.com/nEhiCaLuvN
— Doug Ford (@fordnation) April 2, 2025
For Canadians, the higher tariffs may not immediately affect domestic prices, but the economic impact on sawmills—especially in British Columbia, Quebec, and Ontario—could lead to mill slowdowns and job losses. U.S. homebuilders, who rely heavily on Canadian lumber for framing new homes, are warning that the added cost will inevitably be passed on to American consumers.
The long-running Canada-U.S. softwood lumber dispute has flared up repeatedly over the decades, with no long-term deal in place since 2015. Experts say the lack of resolution continues to inject instability into cross-border trade, particularly in the construction and housing sectors.
As Canada navigates its own housing affordability crisis, industry voices here argue the dispute highlights the need for domestic policy solutions to support homebuilding, including greater investment in local lumber production and reduced reliance on exports.
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