US Tariffs on Canadian Plywood Take Effect, Impacting Construction Industry
Effective August 22, 2026, tariffs imposed by the Trump administration on Canadian plywood and laminated veneer lumber came into force, with softwood lumber already subject to Section 232 measures being exempt. Initially announced in September 2025 and enacted on July 20, 2026, these tariffs impact 36 different plywood varieties. The National Association of Home Builders has expressed concerns about rising housing expenses and a slowdown in construction activities. Richard Branch, chief economist at AIA, highlighted the mounting challenges faced by the construction industry. Proponents of the tariffs claim they benefit domestic producers. In 2024, the U.S. sourced 24% of its forest products from Canada, amounting to $11.6 billion. Canadian Prime Minister Mark Carney intends to introduce counter-tariffs on September 8, 2026, and an update on hardwood imports by October 1, 2026, may result in additional tariffs.
Key facts
- Tariffs on Canadian plywood and laminated veneer lumber went into effect on August 22, 2026.
- Softwood lumber is excluded due to existing Section 232 measures.
- Thirty-six types of plywood are impacted by Section 338 duties.
- National Association of Home Builders says tariffs will increase housing costs and slow construction.
- AIA chief economist Richard Branch warns of exacerbated pressures on construction sector.
- In 2024, U.S. imported 24% of forest and softwood products from Canada, worth $11.6 billion.
- Trump ordered USDA to expand American timber production by 25% in April 2025.
- Canada's Prime Minister Mark Carney plans counter-tariffs on September 8, 2026.
- Joint Economic Committee report estimates tariffs could increase construction costs per home by $17,000.
- AIA's Architecture Billings Index has been negative for almost four years, longest slump since 1995.
Entities
Institutions
- AIA
- National Association of Home Builders
- BC Wood
- Manhattan Chamber of Commerce
- Decorative Hardwood Association
- Kitchen Cabinet Manufacturers Association
- Coalition for Fair Trade in Hardwood Plywood
- FABRIC
- WRNS Studio
- Timberlab
- LEVER
- Joint Economic Committee
- New York Times
- White House
- U.S. Department of Agriculture
- U.S. Secretary of Commerce
Locations
- Canada
- United States
- New York City
- California
- Oregon
- Iran