Tariff Whiplash Creates Big Headaches for Homebuilders
- AHBA
- Sep 25
- 2 min read
Until recently, tariff wasn’t part of the everyday vocabulary of Americans. Unfortunately, it’s now a key part of the conversation that’s creating big headaches for homeowners and the homebuilding industry. The recent on-again, off-again nature of tariffs is causing uncertainty and disrupting supply chains. But while many Americans are just realizing the detrimental effects, the Anchorage Home Builders Association and the National Association of Home Builders have been leading the fight against tariffs on building supplies for years.
On April 2, 2025, President Donald Trump announced he planned to impose a 10% baseline tariff on America’s trading partners, with some tariff rates that will run as high as 50%. In a win for the homebuilding industry, he announced exceptions for Canada and Mexico. Canada accounts for roughly 85% of all softwood lumber imports. Mexico supplies the majority of America’s gypsum, concrete and near-shored appliances.
Tariffs on building materials act as a tax on American homebuyers and builders. NAHB estimates the recent action on tariffs has raised the average cost of a home by at least $9,000. If tariffs go into place, that number will go way up. In addition to driving up prices, the back-and-forth nature of these imposed tariffs is disrupting the supply chain and creating a lot of uncertainty among Americans looking to buy or build new homes.
With housing affordability already a nationwide touch point, AHBA and NAHB are leading the fight to protect the American dream of homeownership. NAHB filed a complaint with the Department of Commerce arguing that housing is a critical component of national security and further lumber tariffs should be avoided. Representatives of NAHB have met with political leaders to discuss how tariffs on building materials will drive up the cost of homes. NAHB is also looking to boost sawmill production and increase the domestic supply of timber.
*Article was drafted in June 2025; tariff information subject to change.
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