New Tariffs on Lumber and Wood Products: What They Mean for you

On September 30, 2025, the U.S. Commerce Department announced new tariffs on lumber, timber, kitchen cabinets, and furniture. These changes, set to take effect on October 14, are expected to put more pressure on construction and remodeling costs, and, by extension, home prices.

The Basics

• Lumber & timber: A new 10% tariff on imports.

• Kitchen cabinets & furniture: A 25% tariff starting Oct. 14, increasing to 30% on Jan. 1, 2026.

• Kitchen cabinets specifically: Tariffs are set to double to 50% on Jan. 1, 2026.

Why It Matters

• The U.S. relies heavily on imports, especially from Canada, which supplies 85% of all U.S. lumber imports.

• Duties on Canadian lumber are jumping from 14.5% to 45%, raising costs across the board.

• Domestic sawmills are currently running at just 64% capacity, making it unlikely that U.S. production can ramp up fast enough to offset the higher import costs.

Impact on Housing

• New homes: Builders will face higher material costs, which could slow construction and raise home prices.

• Remodeling & renovations: Homeowners planning projects that require wood, cabinets, or furniture should expect higher quotes.

• Affordability: These costs add headwinds to an already challenged housing market, where affordability is top of mind for many buyers.

What’s Next

• The tariffs were imposed under a law that allows trade restrictions when imports are deemed a national security risk.

• Industry leaders, including the National Association of Home Builders, are urging the administration to:

  • Increase access to U.S. timber in a sustainable way.

  • Negotiate with Canada and other partners to reduce or eliminate these tariffs.

Bottom Line: If you’re considering building, buying new construction, or renovating, expect lumber and wood product costs to rise in late 2025 and into 2026.

Tip: Planning ahead. Locking in projects sooner rather than later and purchasing materials in advance can help mitigate some of the increases.