Building Costs Set to Rise With Implementation of New Tariffs

Housing costs could soon be increasing with the recent implementation of new tariffs. Set to go into effect on Oct. 14, the U.S. Commerce Department recently announced a 10% tariff on all timber and lumber imports and an additional 25% tariff on kitchen cabinets and furniture, according to the National Association of Home Builders. Additionally, the tariffs on furniture products are expected to rise to 30% beginning Jan. 1, 2026, while the kitchen cabinet tariffs will rise to 50% on the same date.

The U.S. imports roughly one-third of the lumber it consumes because America does not produce enough softwood lumber to meet domestic demand. Canada accounts for nearly 85% of all U.S. lumber imports, and in the past several weeks, the Commerce Department has more than doubled duties on Canadian lumber from 14.5% to 35%. Today’s action means that duties on Canadian lumber will rise an additional 10% to 45%.

The tariffs were imposed under Section 232 of the Trade Expansion Act of 1962. Section 232 allows the president to enact trade restrictions if the U.S. government determines they are a threat to national security. While the 10% tax rate on lumber and timber will put upward pressure on construction costs, it is significantly lower than other Section 232 tariffs.