Congressman Jim Costa (CA-21) led 46 members of Congress in a letter calling on President Donald Trump to reconsider the proposed 25% tariffs on imported building materials from Canada and Mexico. These tariffs could exacerbate the nation’s housing affordability crisis, drive up consumer costs, and slow down the construction of new homes.
“Given the severe housing shortage, compounded by rising construction costs, persistent supply chain disruptions, and an estimated shortfall of six million homes, these looming tariffs, while intended to protect domestic industries, risk further exacerbating the housing supply and affordability crisis while stifling the development of new housing,” wrote the members.
The letter continues, “analysis shows that these tariffs will raise the cost of imported construction materials by an estimated $3 to $4 billion.24
In addition, construction input costs have surged by over 30 percent since January 2021, a rise that gets passed on to consumers, directly contributing to higher home prices and a slowdown in new construction activity, further burdening American families.4 The situation mirrors earlier tariff measures on Canadian softwood lumber that resulted in nearly $9,000 in additional costs per single-family home.”
Members further wrote, “In light of these challenges, we call for your administration to reconsider tariffs on Mexico and Canada to ensure that the escalating costs do not further restrict the development of affordable housing for American families.”
BACKGROUND
The letter underscores the impact of these tariffs on the construction industry, which already faces rising costs and supply chain disruptions. The proposed tariffs would increase the cost of lumber, cement, and drywall, essential materials needed to build and repair homes.
The U.S. imports a large share of these materials, including:
- 70% of our sawmill wood comes from Canada, and it already has a 14.5% extra charge (anti-dumping duty).
- 71% of lime and gypsum (used in cement and drywall) comes from Mexico.
These materials are vital to the construction sector, and additional tariffs would add an estimated $3 to $4 billion in costs, driving up prices for both builders and homebuyers.