Straight talk on tariffs
Uncertainty regarding tariffs continues to challenge companies across industries. It's a common theme in every conversation I’ve had with fellow business owners lately: How do we plan, price or grow when the rules are constantly shifting?
In our case, the lumber industry got a temporary break—framing lumber from Canada, which makes up over 30% of the U.S. market, was exempt from the original tariffs. That’s good news for now, especially for residential construction.
But there’s still no clarity on imports from other key countries like Brazil and China, where tariffs remain in full effect. That could have a serious impact on specialty products like Ipe and hardwood veneers. Other building materials—fasteners, finishes, flooring, and more—are also caught in the middle.
Who really pays?
It’s fair to assume that some level of tariffs will remain under the current administration. After all, tariffs generate revenue. But let’s be honest: That cost will be passed on to the end user. Businesses like ours don’t have the luxury of absorbing increased costs indefinitely. If we did, we’d be out of business.
The uncertainty alone drives prices up. Bidding long-term jobs has become a balancing act of risk management. Think about bonds—longer-term bonds carry higher interest rates to reflect higher risk. The same principle applies here.
Business has to work
Businesses exist to make money—period. Yes, we care about our teams, our partners and our customers. But no one can run a company at a loss. I’ll say it directly: We will not absorb costs we can’t control. And I don’t know any responsible business owner who would. Even those who claim they will might quietly adjust their prices later to protect margins.
We need clarity
At the end of the day, business needs stability. Without it, pricing stays high, planning stalls and demand—especially in construction—remains sluggish.
Neil Agarwal is president and CEO at Frisco Woodline, one of the leading lumber suppliers in the DC and Baltimore markets. A version of this post first appeared on LinkedIn.
