How tariffs on building materials could impact construction costs in Mass.

As Massachusetts continues grappling with a severe housing shortage, industry experts are split on whether the Trump administration's tariffs on key building materials could exacerbate the problem.

Canada supplies approximately 30% of the lumber used in the U.S., making it a crucial player in the American housing market.

President Donald Trump recently announced 25% tariffs on steel, aluminum, and softwood lumber imports. Canada is a major supplier of all three materials, and the move has sparked concern among home builders and remodelers in Massachusetts.

"We're fighting, trying to find ways to make housing affordable, and this is going to go the wrong way," said David O'Sullivan, president of the Massachusetts Home Builders & Remodelers Association.

O'Sullivan fears the tariffs will drive up construction costs, ultimately impacting home buyers.

"Even steel and aluminum are going to affect them greatly, because steel goes into most multifamily housing," O'Sullivan added.

Chris Moynihan, owner of Moynihan Lumber in Beverly, notes that while his business hasn't yet seen a significant impact, the tariffs are causing uncertainty in the market.

"You don't see it, necessarily, in the spot pricing, you see it in the futures pricing. There was a spike initially, and then it dropped," Moynihan said. "To me, this is fear, and nothing more."

While Moynihan believes the impact on lumber prices might be limited, he acknowledges that many large commercial and multifamily home builders in the region rely on direct shipments of lumber from Canada. He also pointed out that lumber represents a relatively small percentage of the overall cost of building a home.

"There's a lot that goes into a house, not just lumber coming from Canada," he said. "That typically would represent somewhere in the vicinity of 2-3% of the total cost."

Despite differing opinions on the immediate impact, both O'Sullivan and Moynihan agree that the situation is fluid and requires careful observation.

"All of that fear has seemed to have subsided, and there seems to be a wait-and-see," Moynihan said. "Let's see what's going to happen between the two countries and what's going to come out of this."

O'Sullivan, however, remains less optimistic.

"It is a wait-and-see, I don't think it's going to be good for the industry," he said.

The tariffs are slated to take effect next month, but the White House has indicated that negotiations are ongoing.