NAHB to Administration: Negotiate Now

Filed in Trade by on August 2, 2018 5 Comments

board members hold negotiate now signAs lumber prices continue to climb to the detriment of home builders and their customers, members of the NAHB Board of Directors have an important message for Secretary of Commerce Wilbur Ross and U.S. Trade Representative Robert Lighthizer: Negotiate now.

“The lumber tariff is a tax on home owners and renters,” said NAHB chairman Randy Noel in the message, which was videotaped on the board floor at the Midyear Meeting July 28. “It’s time to get back to the negotiating table and reach a trade agreement with Canada.”

More than 400 board members attending the meeting held up their signs as part of the message to the two administration leaders.

Meanwhile, the estimate of a $1 billion tax on housing because of the administration’s plan to add a 10% tax on Chinese imports is now more than doubled: This week, President Trump announced the U.S. is now considering a 25% tariff on Chinese goods — including $10 billion that are used by the home building community — which would represent a $2.5 billion tax increase on residential construction.

HBAs are encouraged to share the photo on their social media feeds to help spread the word.

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Comments (5)

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  1. Mike says:

    Let Trump negotiate there’s plenty of lumber the price will come back down. Give him time. He is doing a good job for the future of the home builders and construction industry.

    • David Koster says:

      Most of the lumber increases are not because of the tariffs. Lumber is up more than 60% since January 2017. Where is the Justice Department to investigate the real collusion of lumber mills and distributors? But let’s be honest that this profiteering was spurred by tariffs. You are correct that lumber prices will come down as demand for housing is crushed. In the meantime, I keep losing customers, along with every builder in my market, which is a low- to moderate-price market. Maybe we should be like those farmers on TV who are taking one for the team.

      • Norman says:

        The speculation that lumber prices may come down does not justify an irresponsible and unneeded tariff. Maybe if Trump built single family homes instead of hotels, the tariffs might be removed.

  2. Norman Hyman says:

    Trump’s tariffs on soft Canadian lumber impose an unreasonable and unnecessary cost and burden on affordable housing. Soft Canadian lumber does not compete with or harm our domestic lumber product.

  3. David Gordon says:

    Not guessing supply and demand have anything to do with this? TX and FL and everywhere in between are still being fixed from the two hurricanes last year.

    The economy is good, so new construction is on the rise. Home owners are doing more renovations and additions than ever before. The tariff is a tiny detail in the big picture. More lumber is potentially being used today than we have ever seen. Prices go up when demand is high.

    A $1 billion tariff across 259 different products across the entire nation is less than $100k per state per product. The price hikes in lumber have soooooo very little to do with tariff.

    If it goes to $10 billion, it’s still the same thing. It’s a drop in the bucket across an entire year across the entire nation. Lumber is fickle. On top of that there are a ton of external factors affecting it. Lumber will go up and come back down as it always does. This time just might take a little longer.

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