Friday, March 6, 2026
In an effort to alleviate the soaring costs of building materials and tackle the nation’s housing affordability issues, Senate Democrats introduced the Housing Tariff Exclusion Act last week. The bill seeks to exempt key construction materials, including lumber, OSB (oriented strand board), engineered wood products, cement, glass, insulation, and plastics, from President Trump’s tariffs. The legislation is a direct response to the continued financial strain caused by these tariffs on builders, developers, and homebuyers across the United States.
The Tariff Burden on Builders
The National Association of Home Builders (NAHB) reports that 60% of builders are already experiencing significant cost increases due to tariffs on essential construction materials. On average, these tariff-driven increases have added between $7,500 to $10,900 to the cost of building a typical single-family home. With the recent introduction of a 10% global tariff on construction materials, the financial burden is set to grow even further.
The NAHB has worked closely with Senators Chris Coons (Delaware) and Jacky Rosen (Nevada) to shape the bill. Both senators have expressed concerns over the impact of these tariffs, especially in the midst of the ongoing housing crisis. Senator Coons emphasized, “In a housing crisis, this is the last thing we should be doing,” referring to the additional financial pressures the tariffs are placing on builders and homeowners. Senator Rosen added that the tariffs are hindering efforts to address the affordable housing shortage, making it more difficult and costly for developers to build new homes.
Key Features of the Housing Tariff Exclusion Act
The bill proposes the automatic exclusion of several construction materials from tariffs. This includes lumber, OSB, engineered wood products, cement, glass, insulation, plastics, adhesives, and stone products. If passed, the act will apply to all tariffs imposed since January 19, 2025. It also establishes an expedited process for materials not covered by the exemptions, allowing importers to seek relief when domestic supply falls short.
This new legislation comes after the Supreme Court ruled many of Trump’s tariffs illegal, prompting the administration to impose a new global import tariff. The new 10% tariff landed heavily on construction materials, increasing the strain on builders who had already been facing rising material and labor costs due to previous tariff hikes. Builders have struggled with high prices for Canadian softwood lumber, which, despite being subject to tariffs as high as 35%, remains a key material in the construction industry.
The Impact on Housing Market and Builders
As it stands, approximately 93% of homes in the U.S. are built using timber framing. Nearly 30% of the softwood lumber used in these constructions is imported, with 85% of that coming from Canada. The high cost of Canadian softwood lumber has already led to a 7% decline in single-family housing starts in 2025, with a drop to 943,000 units. This is the weakest result since the post-pandemic recovery.
The NAHB warned that the tariffs on essential materials have worsened the affordability crisis. The lumber and building materials sector, which relies heavily on predictable trade policies, has urged lawmakers to pass the Housing Tariff Exclusion Act. By stabilizing material costs and creating transparency, the bill is seen as an important step in supporting the U.S. housing market.
Endorsements and Support for the Bill
The Housing Tariff Exclusion Act has garnered broad support from various stakeholders within the housing and construction sectors. The National Lumber and Building Material Dealers Association (NLBMDA) immediately endorsed the bill, highlighting its potential to stabilize prices and strengthen supply chains. The NLBMDA emphasized that tariff-induced volatility in construction material prices can delay or deter new housing projects, further exacerbating the housing shortage.
In addition, leading housing advocacy organizations, including Habitat for Humanity and the National Housing Conference, have endorsed the legislation. These groups argue that by reducing building costs, the bill will help increase the supply of affordable housing and address the nation’s growing housing affordability challenges.
The Broader Impact on U.S. Housing Affordability
The housing industry has faced unprecedented challenges over the past few years. From labor shortages to rising material costs, homebuilders have struggled to meet demand in the face of soaring prices. The introduction of this bill aims to provide some relief, offering a clear path forward for both builders and homebuyers.
By exempting critical materials from tariffs, the Housing Tariff Exclusion Act would directly help mitigate the rising costs associated with homebuilding. As the affordability crisis deepens, this bill presents a much-needed solution for developers and homebuyers alike.
Conclusion: A Step Toward Stabilizing the Housing Market
If passed, the Housing Tariff Exclusion Act would offer a vital lifeline to the U.S. housing market. By reducing the financial burden on builders and developers, it could help improve housing affordability, stabilize material costs, and ensure that the nation’s housing crisis is addressed in a more effective and efficient manner. As the legislative process moves forward, the building materials sector continues to push for policies that support a more predictable and affordable construction environment.
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Tags: construction materials, Housing Tariff Exclusion Act, lumber tariffs, National Association of Home Builders, Senate Democrats, Trump’s tariffs, wood and panel, woodworking industry, woodworking USA
