Canada, the leading supplier of lumber to the United States, is poised to face significant repercussions. Published on October 14, 2025, this article discusses U.S. President Donald Trump’s recent decision to impose a 45 percent tariff on Canadian lumber.
In a move that took effect on Tuesday, Trump introduced new tariffs on imported wood, furniture, and kitchen cabinets, a development that is expected to drive up construction costs and add pressure on homebuyers in an already difficult market.
According to the White House, these duties aim to bolster U.S. industries and safeguard national security, expanding a series of sector-specific tariffs that Trump has enacted since resuming the presidency. The latest measures include a 10% tariff on softwood lumber imports, while tariffs on certain upholstered furniture and kitchen cabinets start at 25%. Beginning January 1, the tariff on imported upholstered furniture will increase to 30%, and those on kitchen cabinets and vanities will rise to 50%.
In contrast, duties on wood products from the United Kingdom will not exceed 10%, and those from the European Union and Japan will face a 15% cap, as all three trading partners have negotiated agreements with the Trump administration to avoid more severe tariffs.
Buddy Hughes, chairman of the National Association of Home Builders (NAHB), cautioned that these new tariffs will “create additional headwinds for an already challenged housing market by further raising construction and renovation costs.” U.S. home sales have struggled in recent years due to high mortgage rates and limited inventory, which have driven up costs for buyers.
In justifying the tariffs, Trump stated that the Commerce Secretary determined that “wood products are used in critical functions of the Department of War, including building infrastructure for operational testing.” He also noted that U.S. wood production remains underdeveloped, making the country reliant on imports.
However, Hughes emphasized that imposing these tariffs under the guise of “national security” overlooks the vital role housing plays in the physical and economic security of all Americans.