Tariffs on lumber and appliances set stage for higher costs on new homes and remodeling projects

Shopping for a new home? Ready to renovate your kitchen or install a new deck? You'll be paying more to do so.

The Trump administration’s tariffs on imported goods from Canada, Mexico and China — some already in place, others set to take effect in a few weeks — are already driving up the cost of building materials used in new residential construction and home remodeling projects.

The tariffs are projected to raise the costs that go into building a single-family home in the U.S. by $7,500 to $10,000, according to the National Association of Home Builders. Such costs are typically passed along to the homebuyer in the form of higher prices, which could hurt demand at a time when the U.S. housing market remains in a slump and many builders are having to offer buyers costly incentives to drum up sales.

We Buy Houses in San Francisco, which purchases foreclosed homes and then typically renovates and sells them, is increasing prices on its refurbished properties between 7% and 12%. That's even after saving $52,000 in costs by stockpiling 62% more Canadian lumber than usual.

“The uncertainty of how long these tariffs will continue has been the most challenging aspect of our planning,” said CEO Mamta Saini.

The timing of the tariffs couldn’t be worse for homebuilders and the home remodeling industry, as this is typically the busiest time of year for home sales. The prospect of a trade war has roiled the stock market and stoked worries about the economy, which could lead many would-be homebuyers to remain on the sidelines.

“Rising costs due to tariffs on imports will leave builders with few options,” said Danielle Hale, chief economist at Realtor.com. “They can choose to pass higher costs along to consumers, which will mean higher home prices, or try to use less of these materials, which will mean smaller homes.”

Prices for building materials, including lumber, have been rising, even though the White House has delayed its tariffs rollout on some products. Lumber futures jumped to $658.71 per thousand board feet on March 4, reaching their highest level in more than two years.

The increase is already inflating costs for construction projects.

Dana Schnipper, a partner at building materials supplier JC Ryan in Farmingdale, New York, sourced wooden doors and frames for an apartment complex in Nassau County from a company in Canada that cost less than the American equivalent.

Half the job has already been supplied. But once the tariff goes into effect it will be applied to the remaining $75,000, adding $19,000 to the at-cost total. Once JC Ryan applies its mark up, that means the customer will owe $30,000 more than originally planned, Schnipper said.

He also expects the tariffs will give American manufacturers cover to raise prices on steel components.

“These prices will never come down,” Schnipper said. “Whatever is going to happen, these things will be sticky and hopefully we’re good enough as a small business, that we can absorb some of that. We can’t certainly absorb all of it, so I don’t know. It’s going to be an interesting couple of months.”

Sidestepping the tariffs by using an alternative to imported building materials isn’t always an option.

Bar Zakheim, owner of Better Place Design & Build, a contracting business in San Diego that specializes in building accessible dwelling units, or ADUs, said Canada remains the best source for lumber.

By sticking with imported lumber, Zakheim had to raise his prices about 15% compared with a year ago. He also has 8% fewer jobs lined up compared with last year.

“I’m not about to go out of business, but it’s looking to be a slow, expensive year for us,” he said.

On March 6, the Trump administration announced a one-month delay on its 25% tariffs on certain imports from Mexico and Canada, including softwood lumber. Tariffs of 20% on imports from China are already in effect. A 25% tariff on steel and aluminum imports — 50% on those from Canada — kicked in on March 12.

Tariffs on Mexican and Canadian goods slated to go into effect next month will raise the cost of imported construction materials by more than $3 billion, according to the NAHB. Those price hikes would be in addition to a 14.5% tariff on Canadian lumber previously imposed by the U.S., ratcheting up tariffs on Canadian lumber to 39.5%.

On Air Force One, President Donald Trump said he was pushing forward with his plans for tariffs on April 2 despite recent disruption in the stock market and nervousness about the economic impact.

“April 2 is a liberating day for our country,” he said. “We’re getting back some of the wealth that very, very foolish presidents gave away because they had no clue what they were doing.”

Building materials costs overall are already up 34% since December 2020, according to the NAHB.

Builders depend on raw materials, appliances and many other components produced abroad. About 7.3% of all products used in single-family home and apartment building construction are imported. Of those, nearly a quarter come from Canada and Mexico, according to the NAHB.

Both nations also account for 70% of the imports of two key home construction materials: lumber and gypsum. Canadian lumber is used in everything from framing to cabinetry and furniture. Mexican gypsum is used to make drywall.

Beyond raw materials, refrigerators, washing machines, air conditioners and an array of other home components are manufactured in Mexico and China, which is also a key source of steel and aluminum.

The tariffs will mean higher prices for home improvement shoppers, said Dent Johnson, president of True Value Hardware, which operates more than 4,000 independently owned hardware stores.

“The reality is that many products on the shelves of your local hardware store will eventually be affected,” he said in a statement emailed to The Associated Press.

Confusion over the timing and scope of the tariffs, and their impact on the economy, could have a bigger chilling effect on the new-home market than higher prices.

“If consumers can’t plan, if builders can’t plan, it gets very difficult to know how to price product because you don’t know what price you need to move it,” said Carl Reichardt, a homebuilding analyst at BTIG. “If people are worried about their jobs, worried about the future, it’s very difficult to make the decision to buy a new home, whatever the price.”

The uncertainty created by the Trump administration’s tariffs policy will probably result in increased volatility for home sales and new home construction this year, said Robert Dietz, the NAHB's chief economist.

Still, because it can take several months for a home to be built, the larger impact of from building materials costs are going to happen “down the road,” Dietz said.

The impact tariffs are having on consumers is already evident at Slutsky Lumber in Ellenville, N.Y.

“There are not as many people getting ready for spring like they usually are,” said co-owner Jonathan Falcon. “It seems like people are just cutting back on spending.”

Falcon also worries that smaller businesses like his will have a tough time absorbing the impact of the tariffs.

“This is just like another thing that’s going to be harder for small lumber yards to handle than the big guys and just sort of keep driving businesses like us to not make it,” he said.

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Reporter Anne D'Innocenzio contributed.

FILE - A beam is measured and marked at a housing site in Madison County, Miss., Tuesday, March 16, 2021. (AP Photo/Rogelio V. Solis, File)

FILE - A construction worker examines part of a building under construction in Brick, N.J. on July 10, 2023. (AP Photo/Wayne Parry, File)

FILE - A carpenter aligns a beam for a wall frame at a new house site in Madison County, Miss., Tuesday, March 16, 2021. (AP Photo/Rogelio V. Solis, File)

FILE - A workman arranges a beam on a frame at a new housing site in Madison County, Miss., Tuesday, March 16, 2021. (AP Photo/Rogelio V. Solis, File)

FILE - Lumber is piled at a housing construction site, Thursday, June 24, 2021, in Middleton, Mass. (AP Photo/Elise Amendola, File)

A federal judge on Monday questioned whether the Trump administration ignored his orders to turn around planes carrying deportees to El Salvador, a possible violation of the decision he'd issued minutes before.

District Judge James E. Boasberg was incredulous over the administration's contentions that his verbal directions did not count, that only his written order needed to be followed, that it couldn't apply to flights that had left the U.S. and that the administration could not answer his questions about the deportations due to national security issues.

“That's one heck of a stretch, I think,” Boasberg replied, noting that the administration knew as the planes were departing that he was about to decide whether to briefly halt deportations being made under a rarely used 18th century law invoked by Trump about an hour earlier.

“I’m just asking how you think my equitable powers do not attach to a plane that has departed the U.S., even if it’s in international airspace,” Boasberg added at another point.

Deputy Associate Attorney General Abhishek Kambli contended that only Boasberg’s short written order, issued about 45 minutes after he made the verbal demand, counted. It did not contain any demands to reverse planes, and Kambli added that it was too late to redirect two planes that had left the U.S. by that time.

“These are sensitive, operational tasks of national security,” Kambli said.

The hearing over what Boasberg called the “possible defiance” of his court order marked the latest step in a high-stakes legal fight that began when President Donald Trump invoked the 1798 wartime law to remove immigrants over the weekend. It was also an escalation in the battle over whether the Trump administration is flouting court orders that have blocked some of his aggressive moves in the opening weeks of his second term.

“There’s been a lot of talk about constitutional crisis, people throw that word around. I think we’re getting very close to it,” warned Lee Gelernt of the ACLU, the lead attorney for the plaintiffs, during the Monday hearing. After the hearing, Gelernt said the ACLU would ask Boasberg to order all improperly deported people returned to the United States.

Boasberg said he'd record the proceedings and additional demands in writing. “I will memorialize this in a written order since apparently my oral orders don’t seem to carry much weight,” Boasberg said.

On Saturday night, Boasberg ordered the administration not to deport anyone in its custody through the newly-invoked Alien Enemies Act, which has only been used three times before in U.S. history, all during congressionally declared wars. Trump issued a proclamation that the law was newly in effect due to what he claimed was an invasion by the Venezuelan gang Tren de Aragua.

Trump's invocation of the act could allow him to deport any noncitizen he says is associated with the gang, without offering proof or even publicly identifying them. The plaintiffs filed their suit on behalf of several Venezuelans in U.S. custody who feared they'd be falsely accused of being Tren de Aragua members and improperly removed from the country.

Told there were planes in the air headed to El Salvador, which has agreed to house deported migrants in a notorious prison, Boasberg said Saturday evening that he and the government needed to move fast. “You shall inform your clients of this immediately, and that any plane containing these folks that is going to take off or is in the air needs to be returned to the United States,” Boasberg told the government's lawyer.

According to the filing, two planes that had taken off from Texas' detention facility when the hearing started more than an hour earlier were in the air at that point, and they apparently continued to El Salvador. A third plane apparently took off after the hearing and Boasberg's written order was formally published at 7:26 p.m. Eastern time. Kambli said that plane held no one deported under the Alien Enemies Act.

El Salvador's President, Nayib Bukele, on Sunday morning tweeted, “Oopsie...too late" above an article referencing Boasberg's order and announced that more than 200 deportees had arrived in his country. The White House communications director, Steven Cheung, reposted Bukele's post with an admiring GIF.

Later Sunday, a widely circulated article in Axios said the administration decided to “defy” the order and quoted anonymous officials who said they concluded it didn't extend to planes outside U.S. airspace. That drew a quick denial from White House press secretary Karoline Leavitt, who said in a statement “the administration did not ‘refuse to comply’ with a court order.”

The administration argues a federal judge does not have the authority to tell the president whether he can determine the country is being invaded under the act, or how to defend it.

After Boasberg scheduled a hearing Monday and said the government should be prepared to answer questions over its conduct, the Justice Department objected, saying it could not answer in a public forum because it involved “sensitive questions of national security, foreign relations, and coordination with foreign nations.” Boasberg denied the government's request to cancel the hearing, which led the Trump administration to ask that the judge be taken off the case.

Kambli stressed that the government believes it is complying with Boasberg's order. It has said in writing it will not use Trump's invocation of the Alien Enemies Act to deport anyone if Boasberg's order is not overturned on appeal, a pledge Kambli made again verbally in court Monday. "None of this is necessary because we did comply with the court’s written order,” Kambli said.

Boasberg's temporary restraining order is only in effect for up to 14 days as he oversees the litigation over Trump's unprecedented use of the act, which is likely to raise new constitutional issues that can only ultimately be decided by the U.S. Supreme Court. He had scheduled a hearing Friday for further arguments, but the two organizations that filed the initial lawsuit, the ACLU and Democracy Forward, urged him to force the administration to explain in a declaration under oath what happened.

As the courtroom drama built, so did international fallout over the deportations to El Salvador. Venezuela’s government on Monday characterized the transfer of migrants to El Salvador as “kidnappings” that it plans to challenge as “crimes against humanity” before the United Nations and other international organizations. It also accused the Central American nation of profiting off the plights of Venezuelan migrants.

“They are not detaining them, they are kidnapping them and expelling them,” Jorge Rodriguez, President Nicolas Maduro’s chief negotiator with the U.S., told reporters Monday.

Trump's proclamation alleges Tren de Aragua is acting as a “hybrid criminal state” in partnership with Venezuela.

Family of some Venezuelans in U.S. custody scrambled to find out if their loved ones had been sent to El Salvador. Multiple immigration lawyers said they had clients who were not gang members who were being moved for possible deportation late Friday.

Franco Caraballo was held by immigration authorities during a routine check-in Feb. 3. His immigration lawyer, Martin Rosenow, said Caraballo not been accused of a crime. Caraballo's wife believes he’s been wrongfully accused of belonging to the gang because of a tattoo he got marking his daughter’s birthday,

He called his wife Friday night in a panic because he was being handcuffed and put on a plane to an unknown destination in Texas, from where flights to El Salvador departed.

That was the last the family heard of him and he's disappeared from the federal immigration detainee locator system. “I’ve never seen anything like this,” said Rosenow.

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Cano reported from Caracas, Venezuela. Joshua Goodman in Miami, Michael Kunzelman in Washington, D.C., and Nicholas Riccardi in Denver contributed to this report.

FILE - Republican presidential nominee former President Donald Trump speaks along the southern border with Mexico, on Aug. 22, 2024, in Sierra Vista, Ariz. (AP Photo/Evan Vucci, File)

In this photo provided by El Salvador's presidential press office, prison guards transfer deportees from the U.S., alleged to be Venezuelan gang members, to the Terrorism Confinement Center in Tecoluca, El Salvador, Sunday, March 16, 2025. (El Salvador presidential press office via AP)

In this photo provided by El Salvador's presidential press office, a prison guard transfers deportees from the U.S., alleged to be Venezuelan gang members, to the Terrorism Confinement Center in Tecoluca, El Salvador, Sunday, March 16, 2025. (El Salvador presidential press office via AP)