President Trump imposed 25% tariffs on Canadian lumber imports to encourage domestic production. This decision aims to boost U.S. timber industries but raises concerns about meeting housing needs without Canadian wood.

Canada is a major supplier, providing around 30% of lumber needed in the U.S. market. The U.S. imports about 28.1 million cubic meters of softwood from Canada to fuel construction.

These tariffs will hike lumber prices, increasing new home costs by $35,000 to $45,000. This could worsen the housing crisis by driving up material costs for builders and buyers alike.

Experts like Rajan Parajuli and Robert Dietz point out that tariffs boost domestic prices. The U.S. struggles with labor shortages and wood quality, hindering quick expansion of production.

Past agreements like the 2006 U.S.–Canada deal showed U.S. producers gained $1.6 billion, but consumers faced $2.3 billion in losses. This history warns of economic impacts from tariffs.

Without Canada, the U.S. lacks capacity to meet demand swiftly. Forest labor challenges persist, while efforts to increase imports from Europe can’t match Canada’s volume.

Negotiating new agreements with Canada and solving labor issues are key to stabilizing the market. The goal is to support U.S. industries while keeping housing affordable for everyone.