WHAT?? How can we be doing this when we JUST started to get Millennials to buy? When we JUST started to see the uptick in new housing across the board? When we JUST told people that is was safe to go back into the water! This is crazy.
Let me explain to you what happened. Our current political administration put taxes on lumber and we buy a lot from Canada. Here is a quote from Mr. Dawley, president and CEO of Northland Residential Corp “What Americans and our administration need to understand is that, at a minimum, a third of the U.S. supply of dimensional framing lumber and 100% of red and white cedar shingles come from Canada,” Dawley said. “The simple fact is that U.S. simply does not produce what it consumes, and its economy relies on the rational importation of certain goods. In the case of home building, taxing such goods via a tariff simply drives up the cost of production,” he said.
A study by NAHB economists shows that lumber costs will cause an impact. The tariffs on Canadian softwood lumber will result in the net loss of 9,370 jobs in 2018. Here is a piece from that report – “While there is an expected increase of 1,193 jobs in U.S. sawmills, there is an expected loss of 10,563 jobs in all other industries because there are millions of more jobs that depend on lumber than there are jobs in domestic lumber production. In other words, nearly nine jobs will be lost in other U.S. industries for every job gained in domestic sawmills as a result of these tariffs.
I recently spoke with a builder in Florida who builds his houses using steel. I asked him how the steel taxes would hurt him. He said at this point it’s too soon for him to tell. Here’s a link to help you better understand steel and aluminum taxes.
I understand why taxes are imposed. The current administration is trying to get our businesses to buy more product from US companies first. They did this because of reviews considered to be unfair trade practices. Makes sense. So where is the plan that follows the beginning to end of their actions? What about the end user? What about the one who ultimately pays the true price – in the end? Knock-Knock…that’s us.