Commerce Department Cuts Lumber Tariffs from 20% to 9%

Material Costs
Published

With lumber prices experiencing extreme price volatility this year and harming housing affordability, a final determination of the first administrative review by the U.S. Commerce Department to reduce duties on shipments of Canadian lumber into the United States by more than half is good news for American home builders and home buyers.

"The Commerce Department's action to reduce duties from more than 20% to 9% on softwood lumber shipments from Canada into the U.S. is a positive development, but more needs to be done," said NAHB Chairman Chuck Fowke. "Tariffs have contributed to unprecedented price volatility in the lumber market in 2020, leading to upward pressure on prices and harming housing affordability for American consumers. The U.S. needs to work with Canada to end the tariffs and achieve a long-term, stable solution in lumber trade that provides for a consistent and fairly priced supply of lumber."

This latest development on the tariff front comes at a particularly opportune time, with the Random Lengths Framing Composite Price moving lower since mid-September but still up more than 60% since mid-April. Lower tariffs would mitigate uncertainty and associated volatility that has plagued the marketplace, which could help ease upward price pressure on lumber prices.

Another positive development is that housing construction and new home sales have moved forward at a robust pace in recent months as lumber prices have receded from unprecedented highs. Lumber prices peaked above $950 per thousand board feet in September and are now down to roughly $560 per thousand board feet – which is still at an extremely high historical level.

NAHB continues to work on all fronts to find solutions that will ensure a lasting and stable supply of lumber for the home building industry at a competitive price.

For more information on the tariff reduction, contact Felicia Watson at 800-368-5242 x8229.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Safety

Jun 12, 2025

National Safety Month: Employee Engagement

NAHB is joining with official safety sponsor Builders Mutual to highlight jobsite safety resources during National Safety Month, an annual observance from the National Safety Council.

Economics

Jun 11, 2025

Will AI Be a Job Creator or Job Destroyer?

Artificial intelligence (AI) is rapidly changing industries — and home building is no exception. From AI-powered design tools to robotic equipment on job sites, the way homes are constructed is already evolving.

View all

Latest Economic News

Economics

Jun 12, 2025

Producer Prices Rise in May: New Construction Input Analysis

Prices for inputs to new residential construction—excluding capital investment, labor, and imports—rose 0.2% in May, following a (revised) decrease of 0.2% in April. These figures are taken from the most recent Producer Price Index (PPI) report published by U.S. Bureau of Labor Statistics.

Economics

Jun 11, 2025

Inflation Up Slightly in May

Despite inflationary pressure from tariffs, inflation in May rose slightly but came in softer than expected. The Consumer Price Index increased from 2.3% in April to 2.4% in May year-over-year, according to the Bureau of Labor Statistics’ report.

Economics

Jun 10, 2025

House Price Appreciation by State and Metro Area: First Quarter 2025

House price growth slowed in the first quarter of 2025, partly due to a decline in demand and an increase in supply. Persistent high mortgage rates and increased inventory combined to ease upward pressure on house prices. These factors signaled a cooling market, following rapid gains seen in previous years.