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He’s previously said the U.S. has “all the trees you need.”', '_version': 2, 'componentVariation': 'paragraph'}, 'original_ref': 'www.audacy.com/_components/paragraph/instances/cm7t9wjyv00283d6w1fvhc2ow@published'}, {'data': {'text': '“We don’t need the products that they have,” Trump <a href="https://www.cnn.com/2025/02/02/economy/canada-tariffs-wood-lumber-housing/index.html">said earlier this year</a> when discussing Canadian imports. “We have all the oil that you need. 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Have a project planned? Tariffs could skyrocket building material costs

By Joe HitiMar 03, 2025

If you are planning on building a home or any other project this year, you might be putting the plans on hold, as potential tariffs on building materials could result in prices skyrocketing.

The Trump administration announced last week that it was going to investigate whether or not it should tariff lumber imports, claiming that it would do so because of national security risks, as the administration wants to know if foreign governments are sending cheap lumber to the U.S.

The order from Trump also comes as he attempts to have the U.S. be more self-sufficient when it comes to natural resources. He’s previously said the U.S. has “all the trees you need.”

“We don’t need the products that they have,” Trump said earlier this year when discussing Canadian imports. “We have all the oil that you need. We have all the trees you need.”

If tariffs are put in place, lumber would join the ranks of other tariffed building materials, including steel, aluminum, and copper.

A senior White House official shared that they aren’t certain whether the investigation from the Commerce Department will result in a tariff, but that it is possible, Axios reported. The tariffs that could be placed on lumber would also be additive to others that Trump has threatened to put in place.

This means that any potential tariff would be added on top of the potential 25% tariffs on Canadian imports. It’s also important to note that Canada is one of the nation’s largest lumber suppliers.

The potential increase in building material prices comes as several parts of the U.S. have been hammered by natural disasters, destroying homes and businesses. Those disasters include Hurricane Helene’s path of destruction on the East Coast and the recent wildfires in Los Angeles.

However, if Trump were to put a lumber tariff in place, he wouldn’t be the first to do so, as the Biden administration issued a 14.5% tariff on imports of Canadian softwood lumber in 2024.

Experts have said that soaring lumber prices were a pivotal factor in inflation, as lumber and building material shortages slowed construction. As a result, home prices soared and have yet to fall back to where they were.

The National Association of Homebuilders, a lobbying group, shared its stance on Trump’s proposed 25% tariffs for Canada and Mexico in January, saying it would have a “harmful effect” on housing affordability.

“Tariffs on lumber and other building materials increase the cost of construction and discourage new development, and consumers end up paying for the tariffs in the form of higher home prices,” the group said.

These potential hikes come as projections already show construction costs are going to rise in 2025. According to the real estate services company JLL, both labor and materials are expected to rise between 5-7% in 2025, depending on the market and materials.

With potential tariffs, price increases could jump even higher.

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