Lumber Tariffs

Recent Development on Canadian Tariffs:
On February 1st, the U.S. government imposed a 25% tariff on Canadian imports, including softwood lumber. This was much to my surprise.

As you may remember Canadian lumber already has duties taxed on lumber due to prior softwood trade disputes with the US. After this new tariff, it effectively meant lumber was going to be “taxed/tariffed” nearly 50% from a lot of lumber mills.

On Sunday February 2nd, in response, Canada announced retaliatory tariffs on U.S. good.

Impact on Lumber Pricing was mixed on the morning of Monday, February 3rd:

Lumber futures opened up limit prices

Many distributors were not pricing SPF until mills opened and more information could be obtained.

Several area lumber reloads immediately raised prices +8-10% or = to $0.30 on a 2×4-8’ long

Temporary Pause: As of later Monday these tariffs have been delayed for one month to allow for negotiations between the U.S. and Canadian governments.
The temporary pause provides a short-term reprieve; however, the situation remains fluid. The National Association of Home Builders has expressed concerns that such tariffs could raise construction costs, leading to higher home prices for consumers.

How does this affect your project’s pricing:
At this time, our pricing remains unchanged. I will provide updates if there are any changes. Remember even as recent as last FRIDAY, January 31st,  prices were virtually unchanged week over week, with some prices actually correcting downward slightly.

The outcome of ongoing negotiations will play a significant role in determining future pricing. As we saw today if negotiations fall apart, we can expect prices to rise from both US and Canadian lumber mills. Any price raises today were pretty much wiped away after the announcement of the tariff pause.

If you have growing concerns about pricing on your spring project give us a call to discuss your options in locking in pricing.