Industry leaders react to tariff rollout
On Wednesday, April 2, President Donald Trump unveiled his much-anticipated tariff plan.
Among the flurry of orders, Pres. Trump announced a 10% universal tariff, as well reciprocal tariffs on more than 180 countries and territories. While lumber, specifically, was spared from additional levies this time around, there is still uncertainty regarding a host of other crucial building materials—many of which are sourced internationally, at least in part. Below, industry leaders and associations share their takeaways from the big announcement.
In a statement, NAHB Chairman Buddy Hughes shared:
“While the complexity of these reciprocal tariffs makes it hard to estimate the overall impact on housing, they will undoubtedly raise some construction costs. However, NAHB is pleased President Trump recognized the importance of critical construction inputs for housing and chose to continue current exemptions for Canadian and Mexican products, with a specific exemption for lumber from any new tariffs at this time. NAHB will continue to work with the administration to find ways to increase domestic lumber production, reduce regulatory burdens, and create an environment that allows builders to increase our nation’s housing supply.”
The NAHB further adds that roughly 7 percent of all goods used in new residential construction originate from a foreign nation.
The NLBMDA, which has been speaking out on the potential impact new tariffs might have on housing affordability, pointed to the list of countries facing new levies. It also shared the following:
“...notably absent from the new round of tariffs were additional levies on Canadian and Mexican imports. The White House stated that it would continue its previously announced policy of allowing USMCA-compliant goods to enter the United States without being subject to additional tariffs.”
NLBMDA added that Canadian softwood lumber (and its derivative products manufactured in North America) will not be subject to increased tariffs.
Meanwhile, Kyle Little, COO of Sherwood Lumber and chairman for the North American Wholesale Lumber Association, told ABC News:
“We’ve been holding our breath. The markets have been somewhat frozen over the last couple weeks as people have been preparing for the unknown. For now, at least, lumber is largely unscathed.”
The North American Building Material Distribution Association (NBMDA) released a statement last week opposing the tariffs:
"With the recent tariff activity by the Trump Administration, the North American building material supply chain is facing severe disruptions and uncertainty at a crucial time. As a community, and for the reasons stated below, we oppose the implementation of the proposed new tariffs on building materials.”
The NBMDA emphasized that additional tariffs on building materials would cause inflationary pricing, which would inevitably be pushed onto consumers. "These tariffs will stymie demand for building materials and severely hinder the growth of both our communities and the bottom lines of our small businesses," the group concluded.
National Retail Federation Executive Vice President of Government Relations David French shared major concerns for the retail industry, saying in a statement:
“More tariffs equal more anxiety and uncertainty for American businesses and consumers. While leaders in Washington may not care about higher prices, hardworking American families do. These tariffs will have a disproportionate impact on local communities and will be particularly harmful to small retailers.”
He continues:
“Voters do not see tariffs as helping vulnerable communities including blue collar workers, rural communities, families with young children, low-income households, the elderly and farmers. Tariffs are a tax paid by the U.S. importer that will be passed along to the end consumer. Tariffs will not be paid by foreign countries or suppliers. We encourage President Trump to hold trading partners accountable and restore fairness for American businesses without creating economic uncertainty and higher prices for American families.”
