A 25 per cent tariff on Canadian imports would further erode housing affordability in the United States, warn advocates for that country’s residential development industry. U.S. president-elect Donald Trump issued the threat toward Canada and his southern neighbour, Mexico, yesterday, suggesting that he would sign an order to enact such a tariff scheme once he takes office in January 2025.

Meanwhile, the U.S. National Association of Home Builders (NAHB) has repeatedly called for a long-term trade agreement that would give its members access to Canadian softwood lumber products at a lower cost. NAHB — which represents more than 140,000 members in the home building sector through a network of more than 700 local and state chapters — underscores that tariffs on the key building materials simply flow through to American businesses and consumers. The threat of a heightened tax penalty comes just a few months after the current U.S. administration significantly boosted the tariff on incoming Canadian lumber products from 8.05 to 14.54 per cent.

“For years, NAHB has been leading the fight against lumber tariffs because of their detrimental effect on housing affordability,” affirms Jim Tobin, the association’s chief executive officer. “Increasing tariffs on Canadian softwood lumber will further exacerbate our nation’s ongoing housing affordability crisis.”