Ninety-five percent of the imported lumber used to build homes in the United States is imported from Canada and the rising price of it will ultimately have a trickle-down effect on the buying public.
There has been a lot of talk going back to the Obama administration between the two countries to try and work out a better trade deal, but with little result. In addition, the situation has worsened with the U.S. Department of Commerce’s decision to implement a 20+ percent countervailing duty on imported Canadian lumber.
In response, the National Association of Home Builders (NAHB) is standing up to the Trump administration’s decision and using the prices that potential homeowners will be facing as a rallying cry. For example, a new home will cost on the average $3,600 more with the 22 percent increase on imported lumber prices since January.
NAHB chairman Granger Macdonald added, “NAHB is deeply disappointed in this short-sighted action by the U.S. Department of Commerce that will ultimately do nothing to resolve issues causing the U.S.-Canadian lumber trade dispute but will negatively harm American consumers and housing affordability.”
Another solution is to raise the amount of domestic lumber being used, which is currently only at 67 percent. The NAHB is calling for additional logging in federal forests.
H/T: The Hill
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