Prices for softwood lumber and gypsum used in drywall, mostly imported from Canada and Mexico, are anticipated to soar if 25% tariffs are ultimately imposed on these countries.

Numerous communities already are struggling with an affordable housing shortage, including those in Lycoming County.

Tariffs on building materials will make homebuilding more expensive, sources familiar with the construction trade said.

The National Association of Home Builders (NAHB) has warned that over 70% of the imports of two essential building materials, softwood lumber and gypsum (used in drywall), come from Canada and Mexico, respectively.

“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,” NAHB Chairman Carl Harris said in a statement to President Donald J. Trump.

Right out of the gate, as part of an economic and national security strategy, Trump on Feb. 1 announced an across-the-board tariff of 25% on Canadian and Mexican goods coming into the U.S.

As of Feb. 3, tariffs on both countries have been delayed for one month as negotiations continue.

“Our sector relies heavily on a diverse and cost-efficient supply chain for building materials such as lumber, steel, gypsum and aluminum,” Harris stated.

To be fair, Harris’ letter was coupled with expressions of support for administration’s goals, but also a warning of potential price hikes in home building supplies and materials passed onto the consumer.

“While home building is inherently domestic, builders rely on components produced abroad, with Canada and Mexico representing nearly 25% of building materials imports,” Harris wrote. “The board stands ready to work with you to accomplish these goals. However, we have serious concerns that proposed 25% tariffs on Canada and Mexico will have the opposite effect, by slowing down the domestic residential construction industry,” he stated.

Since January 2021, residential construction saw price increases of just over 30%.

There’s a 14.5 % tariff on Canadian softwood lumber before the proposed 25 % tariffs, Daniel E. Durden, CEO, Pennsylvania Builders Association told the Sun-Gazette.

“We are in sync with the NAHB letter,” he said.

Durden acknowledged the uncertainty of the tariffs’ impact and its effect on the buyer of the goods, including the builders.

“How do they plan their budgets?” he asked.

Harris added that these prices are passed onto home buyers who will likely see higher prices for construction of residential properties and other projects.

The PBA, a statewide non-profit trade association incorporated in 1945, has a network of 29 local associations across the state of Pennsylvania, offering a unified voice for the home building industry and the housing consumer.

This includes the West Branch Susquehanna Builders Association (WBSBA), Durden said. The West Branch association serves over 120 members and businesses throughout the region including Lycoming, Sullivan and surrounding counties since 1959.

The association is most known for holding a builders show in the spring, where hundreds (perhaps thousands) of people attend to gain perspective from professionals, shop, get price quotes and speak with about the latest in building trends.

An official there referred the Sun-Gazette to the PBA and NAHB about the tariff impact on building materials and supplies.

In terms of home building, Durden said Pennsylvanians should be mindful of what happened to lumber cost and availability during the recent COVID pandemic with the supply-chain delay in availability of these materials.

Harris cautioned the president that further supply chain disruptions from increased tariffs coupled with increased demand for materials could also hinder rebuilding efforts in areas affected by natural disasters, and he acknowledged the president’s efforts thus far by saying, “which you have pledged to help rebuild as quickly as possible.”

The association is understanding of the intent of the tariffs as a new economic policy. However, he added, “NAHB’s members understand you have larger and well-intentioned policy goals in mind as you consider a holistic trade policy.”

Harris went further with his expressions of concern: “However, we respectfully ask that you consider the effects of tariffs on Americans struggling to afford housing and that you exempt critical construction materials from such actions. We look forward to working with you to create jobs, boost our economy, and provide safe and affordable housing for all Americans.”

Harris, furthermore, addressed the nation’s need for building homes – and making them affordable.

“Our country is facing a severe housing shortage and affordability crisis, which you recognized on your first day in office by issuing an executive order that seeks to increase housing supply and affordability,” Harris stated in the letter.

“Bringing down the cost of housing will require a coordinated effort to remove obstacles to construction, be they regulatory, labor or supply-chain related,” he said.

The Associated Press contributed information in this story