26
May

NAHB Responds to U.S. Commerce Department’s Preliminary Determination to Double Lumber Tariffs

A move by the Commerce Department to double duties on Canadian lumber shipped into the U.S. is raising the ire of the home building industry. In a statement from Chairman Chuck Fowke, NAHB says the move “clearly shows the White House is disingenuous when it claims the nation’s housing affordability crisis must be an important priority.”

The preliminary determination to take lumber tariffs from around 9% to over 18% is indeed a troubling signal, especially when a Biden Administration cabinet member just got an earful from Congress about the issue this month.

Dallas Builders Association joined other HBAs nationwide earlier this month in meeting with our respective members of Congress, urging them to push the White House to undertake a thorough examination of the lumber supply chain and seek remedies that will increase production. We also advocated for relief from tariffs. That same week, U.S. Secretary of Commerce, Gina Raimondo, appeared before a House Appropriations subcommittee. During the hearing, multiple members of Congress raised the concern about rising lumber prices and production issues after hearing from home builders. This was followed by the Biden Administration facing questions about the lumber issue again the next week, as U.S Trade Representative Katherine Tai appeared before the Senate Finance Committee. In both hearings, the response was that the Administration would make the issue a priority. On May 12, U.S. Senators Jeanne Shaheen (D- N.H.) and Jerry Moran (R – KS) even sent a letter to Secretary Raimondo and Trade Representative Tai stating that, while the December 2020 reduction of tariffs, by the previous Administration, for some producers of lumber from Canada was a step in the right direction, the complete elimination of the tariffs is necessary for the relief in rising lumber prices.

Then, on May 21, the Commerce Department announced it is seeking to double tariffs via the preliminary determination for new rates on Canadian softwood lumber. NAHB immediately voiced its disapproval of the action.

Click here to view an update from NAHB that includes Chairman Fowke’s statement.