How US-Canada Trade War Could Deepen America’s Housing Crisis
Summary
The trade conflict between the U.S. and Canada has led to new tariffs on Canadian goods, including building materials, which could raise costs for American homebuilders and buyers. These tariffs add to rising material prices and may slow down home construction during a time when housing is already hard to afford.Key Facts
- The U.S. and Canada have imposed new tariffs on $20 billion worth of goods due to failed trade talks.
- Canada responded with tariffs up to 50% on items such as hockey sticks, clothing, wine, dairy, cement, and plywood.
- Canadian lumber faces a 35-45% tariff in the U.S., increasing building costs.
- Tariffs have caused building material prices to rise 40% since December 2020.
- The National Association of Home Builders warns that tariffs increase housing costs and reduce new construction.
- Lumber imports to the U.S. are at their lowest quantity since 2014.
- Higher costs mainly affect plywood, veneer, engineered wood products, aluminum, and steel used in homebuilding.
- Rising mortgage rates have a bigger impact on housing affordability, but tariffs exacerbate the cost challenges.
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