The Trump administration was facing fallout Monday after having announced its intention to impose a 25% tariff on Canada and Mexico. The announcement ruffled the feathers of many, including people in the construction industry. 

“The challenge in talking about this was to describe it with words that wouldn’t get me in trouble with the FCC,” Associated General Contractors of New York State President and CEO Mike Elmendorf said. “It is a terrible idea.”  

Elmendorf said tariffs are the last thing the industry needs after having weathered a supply chain crisis brought on by the COVID-19 pandemic.  

“You put a 25% tariff on Canadian lumber, guess what happens? American suppliers, domestic suppliers raise their costs by like 20%,” he said.  

According to the National Association of Home Builders, more than 70% of softwood lumber and gypsum – two essential materials homebuilders rely on – come from Canada and Mexico respectively.  

“You know, and what happens when the cost of construction projects goes up? You end up with less than them, you have projects that end up not being viable,” Elmendorf said.  

The tariffs are disconcerting for nonprofit organizations too.  

“For us, just about 100% of our lumber comes from Canada,” Habitat for Humanity Capital District Executive Director Christine Schudde said. “It’s going to be much more expensive.”  

Habitat for Humanity leaders say with no obvious alternative, there are uncertainties.

“We have eight more houses in predevelopment that we haven’t purchased lumber yet," Schudde said. “This could have a real impact on projects, starting as of this spring.”  

The tariff on softwood lumber is in addition to an effective 14.5% duty rate already in place.  

“It is an absolutely stupid policy,” Elmendorf said. “It is going to cost jobs. It is going to cost lots of money, and it is going to stop projects that are currently in the pipeline in New York and elsewhere around the country.” 

In the meantime, the Trump administration has received some applause — the White House pushing out a letter it received from Nucor, a North Carolina-based steel company.  

It’s president said, “Nucor applauds the first steps taken by President Trump in his America First Trade Agenda. We look forward to working with POTUS to enforce our trade laws & strengthen American manufacturing!”