President Trump has unveiled a sweeping set of tariffs targeting building materials, imposing an additional 10% duty on imported softwood timber and lumber and a 25% tariff on kitchen cabinets and vanities, with the latter set to rise to 50% on January 1, 2026. These tariffs, coming on top of existing surcharges, mark a sharp escalation in trade measures aimed at foreign suppliers of critical housing and construction products.
Industry experts warn the move could sharply raise costs for builders and homebuyers. The U.S. remains heavily dependent on foreign wood, and, as CNN reported, currently lacks the industrial base needed to replace these imported supplies. Data from the World Bank underscores this reliance: Canada accounts for just over 39% of U.S. lumber imports, followed by China at 14%, Brazil at 7%, Mexico at 4.4%, and Germany close behind at 4%.
“The implications are straightforward—higher prices passed onto business and, thus, the consumer,” said Jeff Lichtenstein, chief executive of Echo Fine Properties. The once-common expectation that trade partners might absorb additional costs, he added, has faded. “Tariffs are a way of life today,” Lichtenstein said, observing that the impact on property markets has become inescapable. “Because the differential in new construction will be and already is occurring, leases and resales will be able to raise prices,” he noted. “Today, we had a lease with a 28% increase that was a renewal in Jupiter, Florida.”
Developers appear to have already factored these elevated costs into their projects. “Alternate supply sources have been identified, and developers need to be prepared for disrupted supply chains and increased lead times when sourcing construction materials and cabinetry,” said Rick Porras, CFO at Neology Group. He added that many in the industry expect any disruption to be temporary if the U.S.-Mexico-Canada trade agreement is revised.
Still, for some segments of the market, the effects may be more immediate and severe. Patrick Haggerty, co-chair of commercial real estate at Pashman Stein Walder Hayden, predicted that multifamily construction would feel the pinch first. Higher input costs “could delay some projects,” he said, while those in the pipeline may warrant “fresh underwriting by both the builders and construction lenders.”
For builders already coping with rising material costs due to natural disasters, the timing could not be worse. “We’re already bracing for higher lumber prices because of the rebuilding demand that’s about to surge from thousands of homes lost to wildfires. Adding another 10% tariff on top of that only makes construction and reconstruction even less affordable,” said Gary Mkrtichyan, founder of Los Angeles-based Opus Builders.
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