Donald Trump’s tariffs on Canadian goods might be making homeownership even more expensive. A new report by the Canadian Chamber of Commerce says the cost of building a single home in the U.S. could jump by $14,000 by 2027 if the tariffs stay in place.
Canada plays a major role in supplying materials for U.S. construction. In 2023, it accounted for 69% of imported lumber, 25% of iron and steel, and 18% of copper. Those materials are vital for home building, especially lumber, which is used for framing.
The White House, however, sees things differently. “The Administration has consistently maintained that the cost of tariffs will not be borne by American consumers,” said spokesperson Kush Desai. “A new CEA analysis proves just that: prices of imported goods have actually fallen this year despite President Trump’s historic tariffs.”
The Canadian Chamber projects total costs could rise to $20,000 per home when adding up tariffs from Trump’s first term. Most of the cost increase is linked to Canadian softwood lumber.
With construction imports accounting for $13 billion of the $184 billion in 2023 construction spending, any disruption matters. And while not all builders are affected, 60% have already seen price hikes, according to an NAHB survey.
The biggest impact is expected in states like Texas, Florida, and California, which rely heavily on imported materials.
Still, “about 40% of the builders in our survey noted no cost effect,” said NAHB’s chief economist Rob Dietz, though many continue struggling to price projects accurately.
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