U.S. tariffs on Canadian goods worsen housing affordability crisis

New U.S. tariffs on Canadian lumber and other building materials are intensifying an already severe housing affordability crisis, experts say. The duties, imposed this month, raise the cost of imported construction supplies, directly affecting homebuilders who rely on Canadian wood. For prospective buyers, higher material costs mean higher home prices and fewer affordable options. The tariffs add to existing supply-chain pressures and labor shortages, compounding the challenge of building enough homes to meet demand. Canada is the largest foreign supplier of softwood lumber to the U.S., and the duties effectively tax every new home that uses Canadian wood. Builders say they have no choice but to pass on the extra costs, with estimates suggesting an increase of several thousand dollars per house. This comes at a time when the U.S. housing market is already struggling with record low inventory and rising interest rates. Critics argue the tariffs undermine broader efforts to boost housing supply and affordability. Looking ahead, trade negotiations could offer relief, but for now, the added costs are likely to persist, squeezing both builders and buyers.