Lumber Market Update April 2025 
Tariff Developments and Market Impact

President Donald Trump’s recent tariff announcements have significantly impacted the lumber industry. On April 2, 2025, the administration imposed sweeping tariffs, including a 10% tariff on all imports, with higher rates for specific countries.

Notably, Canadian lumber was exempted from these new tariffs, despite earlier threats.

This exemption led to a dip in lumber prices this week, which had previously risen in anticipation of additional duties. The reversal reflects diminished expectations of new tariffs and concerns about a potential housing market slowdown due to increased construction costs.

However, the broader tariffs are expected to increase the cost of building materials, potentially adding approximately $6,000+ to the cost of constructing a typical home. This increase may pose challenges for consumers, given the tight housing market and existing affordability issues. 

Simple Market Summary:  The Roller Coaster Ride 

It’s that heart-pounding moment of stillness at the peak—suspended in midair, breath held—right before gravity takes over and the wild ride begins. And before you know it, it’s just a blur and its all over, that fast.
The lumber market is always a bit of a rollercoaster—one minute prices are climbing like a tree, the next they’re dropping like a loose 2×4.  

Right now, things are leveling out after a few years of wild swings, with supply and demand trying to shake hands again.

Trade tensions (hello, countervailing duties!) still stir the pot, but overall, it’s a market that keeps builders guessing and lumber traders trading based on data points, instinct and gambling .Take a look at the graphs below—we anticipate a dip in prices for a brief period before those trusty countervailing duties come back into play. After all, it’s only the sixth time in a row they’ve been applied… some things in lumber never change! 

Reach out to strategize your orders before the duties kick in!

Implications for the Upcoming Lumber Market

Supply Chain Challenges and Housing Demand

The lumber market continues to face supply chain challenges, including timber shortages and logistical issues. Environmental factors, such as wildfires and pest infestations, have slowed timber production in key regions. Additionally, labor shortages in mills and transportation sectors have contributed to delays and increased costs.

Despite these challenges, housing demand remains robust. The National Association of Home Builders (NAHB) reports that single-family housing starts reached a 12-month high in February 2025, indicating strong demand for new homes. However, the increased costs of construction materials due to tariffs and supply constraints may impact future housing affordability and construction activity. 

Navigating the Lumber Market with Experts

We hope you enjoyed and feel informed on current market trends. However, nothing beats real time expert guidance! 

Stay in front of lumber market fluctuations and insights by working with Trio.

Join us as we track price changes and market trends in real time.

Reach out to our team of experts for your purchasing strategy – The Trio Team