Builders Angry Over Proposed Lumber Tariffs

LOS ANGELES-Multifamily builders across the US are reacting angrily today to a proposal by US trade officials to slap a stiff new tariff on Canadian lumber, saying it could add more than $2,000 to the cost of building a single apartment unit and more than $4,000 to the cost of building a house.

Their outrage stems from the US International Trade Commission’s unanimous finding yesterday that there is a “reasonable indication” that domestic timber companies are being hurt by subsidies that the Canadian government provides to producers headquartered north of the border. The finding paves the way for the Commerce Department to slap a stiff new tariff on lumber products imported from Canada, perhaps as early as next month.

Trade officials are being pressured to initiate a tariff of up to 78% by the Coalition for Fair Lumber imports, a group of US lumber producers that accounts for roughly two-thirds of all domestic sales. But the tariffs are opposed by most developers and the National Association of Home Builders, who say it could easily add more than $100,000 to the cost of building a mid-size apartment complex or a typical 25-house tract.