New Trump Wood Tariff Could Hurt Housing

06/28/2017
Comments
  • Let’s look at your numbers and statements.

    You said the US was their number one importer. We don’t how much wood is being imported, we know we import more than others. That could mean diddley.

    After reading the article, it is an Anti-Dumping measure. That is a good thing.

    If the Canadians are selling 4.5-7% less and we use the AD tarriff of UP TO 30%, then wood buyers would buy from US suppliers, that would increase the cost of wood by about 5%.

    Let’s suppose (I don’t know the actual numbers) wood is 15% of the cost of a home built, the rest going to land, labor, drywall, elec, plumbing, roofing…

    Now, let us look at some math for a $300,000 house

    $45,000 = 15% of the $300,000
    $45,000 x 5% = $2,250
    $2,250 / $300,000 = .75%

    So that is less than 1% increase of some house houses.

    You guys are taken lessons from political writers, the headline says one thing the reporting says another.

    Rob Aubrey June 28, 2017 7:35 am Reply
  • Rob Aubrey nailed it (pun intended). Even the American Wood Council estimates the increase in home prices would be less than 1%. Canadian wood is not subsidized directly. Lumber in Canada is cut from federal lands with minimal royalties paid to Canada. US lumber is mostly on private land with all the extra associated costs. Wood, like steel, is an international commodity. Sellers buy from wherever it is cheapest. Home builders, even the huge publicly traded ones, do not buy wood from other countries. They buy from various lumber distribution entities (lumber yard, Big box commercial divisions, etc.) albeit often with national contracts.

    It’s funny to hear all the pushback on this tariff given the #MAGA bent on this site. Seems everyone wants American jobs, but aren’t willing to pay for it if it impacts their little corner of the economy.

    Yanos June 28, 2017 10:11 am Reply
  • Okay, so Capitalism always finds ways to solve problems. Canadian soft wood getting more expensive? Use less of it. Substitute steel studs for 2 x 4’s. Here in southwestern Florida almost all homes are built out of concrete block outer walls and steel studding. Just saying, there’s always another way…

    Fred Parr June 28, 2017 12:14 pm Reply

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