The National Association of Home Builders (NAHB) is urging President Trump to rethink his plan to impose 25% tariffs on imports from Canada and Mexico—at least when it comes to building materials. NAHB warned that these tariffs would drive up construction costs, making it even harder for Americans to afford a home.
In a letter to the president, NAHB Chairman Carl L. Harris pointed out that housing affordability has already been strained by rising material prices and supply chain challenges. The letter emphasized the need for policies that encourage—not hinder—home construction.
The letter states:
“Bringing down the cost of housing will require a coordinated effort to remove obstacles to construction, be they regulatory, labor or supply-chain related. The National Association of Home Builders (NAHB) 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.”
The Impact on Housing Costs
Since 2021, the price of construction materials has risen by over 30%, making it harder for builders to keep costs under control. Canada and Mexico play a key role in the U.S. housing market, supplying nearly a quarter of building materials such as lumber, steel, and aluminum. NAHB argues that slapping additional tariffs on these imports will only add to the problem.
“Imposing additional tariffs on these imports will lead to higher material costs, which will ultimately be passed on to home buyers in the form of increased housing prices.”
Beyond pricing concerns, NAHB warned that the tariffs could slow down rebuilding efforts in disaster-affected areas, where demand for materials is especially high. Supply chain disruptions from tariffs could make it harder to get the materials needed for reconstruction, despite the administration’s commitment to rebuilding communities as quickly as possible.
NAHB’s Call for Exemptions
While NAHB acknowledges the administration’s broader trade policy goals, they are asking for an exemption for critical building materials to prevent further harm to the housing market.
“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.”
With housing affordability already at crisis levels, the industry is watching closely to see if the administration will heed NAHB’s request.
The full letter from NAHB can be read below:
