Trump’s Tariff Threats Stir Uncertainty in Lumber Industry

PITTSFIELD, Mass. — The lumber and building supply industry is grappling with uncertainty as President Donald Trump‘s proposed 25 percent tariff on Canadian lumber looms, scheduled to take effect on April 2. Experts warn that such tariffs could cripple housing production and further elevate prices for essential building materials.

In 2023, Massachusetts imported $11.4 billion in goods from Canada, with $279 million specifically allocated for wood and semifinished wood products, according to the Canadian consulate in Boston. Local suppliers are concerned about the ripple effects of potential tariffs.

“We’re in limbo right now without any tariff,” said Dick Shields, owner of Dresser Hull Lumber and Building Supply in Lee. “But as we get closer to April 2, we will have to see what happens.”

John Mahoney, COO of Fairview Millwork, a Bridgewater-based lumber supplier, echoed concerns about price hikes. “To protect ourselves and to put everyone else on notice, all of our contracts and sales documents will now include a disclaimer that should tariffs go into place, our customer is responsible to cover those costs,” he stated.

Tim Church, general manager at Duke’s Lumber and Hardware Contracting Supplies in North Adams, reported similar anxieties. Vendors are already discussing potential price increases of 5 to 40 percent, he said. “It’s going to affect everyone in the nation,” Church added, emphasizing their efforts to keep prices low.

Industry professionals indicate that current prices for lumber are volatile. Francis Palasieski, director of government affairs at the Northeastern Retail Lumber Association, noted, “Prices are changing every day, orders are being canceled … you quote a price today and tomorrow it’s a different price.”

The National Association of Home Builders estimates that tariffs on lumber and gypsum could increase material costs by $7,500 to $10,000 for the average single-family home. With the Northeast relying heavily on Canadian lumber, the impact would be particularly pronounced, raising local concerns.

“In the Northeast, we actually use more Canadian lumber than most of the U.S., largely due to our climate,” Palasieski explained, showcasing the region’s unique dependency on imports. “It creates a domino effect in terms of supply and cost.”

Concerns extend beyond just pricing. Developers in the Berkshires, an area already battling a sluggish housing market, worry that tariffs could compromise their ability to build affordable homes. “That uncertainty makes capital and investment sit on the sidelines longer,” said Ed Augustus, state Secretary of Housing and Livable Communities.

The ongoing turmoil has forced businesses like Fairview Millwork to prepare clients for potential adjustments. Mahoney expressed the fear of losing local trust, emphasizing, “What we have to work with is people who know us in the community. We don’t want to risk any of that getting damaged.”

As local industries grapple with the impending tariffs, many remain in a state of uncertainty. Plans for housing development could stall, raising broader implications for economic growth and community stability. The next few weeks will be critical as all eyes turn toward legislative outcomes surrounding the tariff announcement.