The average cost of a new home in America could increase by more than $1,200, as the Trump administration imposes new tariffs on Canadian lumber, according to industry estimates.
The National Association of Home Builders estimates that new duties imposed by the U.S. Commerce Department on Canadian softwood lumber transported to the U.S. stand to raise the price of an average single-family home up by $1,236, CNBC reports.
Even before the duties were announced, anticipation of their arrival had raised the cost of lumber by 22%.
Canadian Prime Minister Justin Trudeau called Trump on Tuesday to protest the “unfair” duties of up to 24% on Canadian imports of the construction material, which are expected to affect $5.66 billion worth of trade between the two countries.
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Trump’s tariffs add to a spat with Ottawa over dairy farmers, ratcheting up tensions between the U.S. and its largest trading partner as the two countries prepare to renegotiate the 23-year-old North American Free Trade Agreement.
[CNBC]