President Donald Trump’s proposed 25% tariff on Canadian and Mexican goods will harm housing affordability in the United States, the National Association of Home Builders (NAHB) said in a statement over the weekend.
Previously, the association applauded Trump’s day-one executive order that urged government agencies to take action to lower the cost of housing and expand the housing supply. However, NAHB chairman Carl Harris said raising tariffs will have the opposite effect.
“More than 70% of the imports of two essential materials that homebuilders rely on — softwood lumber and gypsum (used for drywall) — come from Canada and Mexico, respectively,” Harris said in a press release. “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 urges the administration to reconsider this action of tariffs,” Harris continued. “We will continue to work with policymakers to eliminate barriers that make housing more costly and prevent builders from boosting housing production.”
The tariffs are scheduled to go into effect at 12:01 a.m. ET on Feb. 4. Beginning then, Canada will be taxed 25% on imports, excluding energy. (Energy imported from Canada, including oil and natural gas, will be taxed at a lower rate of 10%.) Meanwhile, China will be taxed 10% on all imports.
Mexico, too, was supposed to incur a 25% tariff. However, on Feb. 3, Trump announced a one-month delay on that tariff, following a conversation with Mexico’s President Claudia Sheinbaum Pardo.
Editor’s note: After this article was initially published on Feb. 3, 2026, Trump agreed to delay the Canadian tariff for at least 30 days following a a conversation with Canadian Canadian Prime Minister Justin Trudeau. According to Trudeau, the terms of that delay include a $1.3 billion “border plan” for Canada plus additional Canadian resources directed to stop the flow of drugs, particularly fentanyl.
In the wake of that news, Harris released a new statement on behalf of NAHB:
“We commend President Trump for reaching an agreement with Canada and Mexico to delay the proposed tariffs, avoiding additional strain on a housing market already facing affordability challenges. Stability and certainty are essential for American businesses, consumers, and the strength of our economy. We urge all parties to remain committed to productive dialogue to prevent new tariffs on construction materials critical to housing our nation.”