Tariffs and the Building Products Industry: What Now, What Next?

In the building products industry, uncertainty is nothing new, but the recent developments surrounding tariff policy have put many leaders on edge. As we navigate the Trump Administration’s ongoing investigation into North American lumber imports under Section 232, the entire supply chain is holding its breath.

For now, we’ve avoided major disruption. But the message is clear: this isn’t over and we need to be ready.

A Market in Limbo

Following an early March announcement about potential new tariffs, and the delay that followed, the industry was bracing for impact as April 2 approached. Would Canadian lumber, a cornerstone of our supply chain, be hit with additional tariffs?

Fortunately, the latest round of tariff actions left the lumber market largely untouched. For now, imports from Canada (and elsewhere) will continue without new restrictions. That could change quickly, depending on the outcome of the Section 232 investigation, but the immediate crisis has been defused.

Still, the pause has left many in the industry stunned, unsure whether to move forward with projects, lock in supply contracts, or shift sourcing strategies. And who can blame them?

The Bigger Picture: Lumber, Housing, and U.S. Policy

What’s driving this? A broader push by the Trump Administration to bring key industries back to U.S. soil. It’s a move aimed at increasing self-sufficiency, especially in sectors critical to housing.

That housing issue is real. The U.S. is still short by an estimated 1.5 to 2 million homes. Housing affordability continues to be a challenge, and the cost and availability of materials remain key barriers for builders.

Right now, the U.S. only produces 70–75% of the lumber we consume. The rest? Mostly Canadian imports. It’s a relationship that’s worked for over a century, but it’s also one that tariff policy could disrupt.

Cutting off that Canadian flow would trigger significant inflation across the construction and building products industry. In that context, the current decision to delay further tariffs is welcome news — but it’s not a solution.

What This Means for the Industry

Short-term: We're in a holding pattern. No immediate disruption means no need for panic. Suppliers, builders, and distributors can continue with business as usual, for now.  

Long-term: The status quo isn’t sustainable. If the investigation under Section 232 results in new tariffs or trade restrictions, it will upend the current balance. That means sourcing strategies, pricing models, and inventory planning will all need to adapt.  

What Leaders Should Be Doing Now

Whether you’re a building products manufacturer, distributor, or contractor, now is the time to act not react.

Here’s where to focus:

1. Reevaluate your supply chain.
   Identify vulnerabilities, particularly any heavy reliance on Canadian lumber. Start exploring domestic or alternative sources that could step in if necessary.

2. Increase communication with suppliers.
   Talk openly with your vendor partners. Understand their exposure, ask about contingency plans, and assess how quickly they can adjust if policy changes.

3. Monitor Section 232 developments closely.
   Stay informed. The next few months will be critical, and having real-time insight into policy decisions will help you stay ahead of disruptions.

4. Plan for pricing volatility.
   Even the threat of tariffs can drive market speculation. Prepare your clients and stakeholders for the potential of rising costs and longer lead times.

5. Focus on resilience.
   Consider this a wake-up call to strengthen your operational agility. Whether it’s diversifying suppliers, adjusting contract terms, or investing in forecasting tools, resilient organizations will weather this best.

Final Thought: Prepare Now, Thrive Later

The Section 232 report is coming, and with it, the potential for sweeping changes to how the U.S. sources lumber. No one knows exactly what’s next but the leaders who prepare now will be in the best position to thrive, no matter what the policy outcome.

At The Bridger Group, we help companies identify and place forward-thinking sales leaders who can navigate challenges like these with clarity and confidence.

Need help building a team ready for whatever 2025 brings? Let’s talk.

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