Builders Bear the Brunt of US-Canada Wood Trade Dispute

Amid the pandemic, many lumber mills in the Pacific Northwest temporarily closed up shop. This pushed home builders to purchase wood from Canada instead, but the change in supplier has upped building costs, according to Newsmax. Canadian softwood lumber producers pay average tariffs of more than 20% when shipping to the U.S. For home builders, that means an 8% average price increase. As home builders try to meet the new demand after reopening, there is no choice but to give in to the higher prices, and framing lumber can be a fifth of home building material costs alone. 

As a wave of pent-up homebuying emerges across the U.S., a pesky and oft-forgotten trade dispute with Canada is boosting building costs.

A long-simmering spat between the U.S. and Canada over softwood lumber is adding to the expenses homebuilders face in the fallout from disruptions related to the coronavirus pandemic, said David Logan, director of tax and trade policy analysis for the Washington-based National Association of Home Builders. Lumber mills in the Pacific Northwest cut production amid lockdowns, and builders are buying more wood from Canada, he said.

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