The 26 percent duties are projected to raise the price of an average home by $1,700
The U.S. Department of Commerce has levied two tariffs on Canadian softwood lumber in 2017 that will lead to a tremendous job loss, as NAHB argues.
Two duties that impose a 26.75 percent total tariff on Canadian lumber — 19.88 percent countervailing duty (CVD) and 6.87 percent anti-dumping duty (AD) — will lead to a loss of 11,336 full-time U.S. jobs in 2017, along with $685.5 million in wages and salaries for workers and $481.8 million in taxes and revenue for the government.
Architecture and engineering services will also be negatively impacted, as will businesses that sell and transport building materials.
NAHB calculates that with the new import policy, customers will pay 8.8 percent more for lumber. The price of an average single-family home will increase $1,701, and investments in single-family structures will be reduced by $1.3 billion.
In real terms, NAHB’s estimates of the negative impacts of the duties on Canadian lumber would be somewhat larger in 2018, due to a continuing recovery in the single-family housing market, resulting in percentage reductions being applied to a larger base. Dollar denominated estimates would also be slightly larger in 2018 due to general inflation.