Canadian lumber tariffs could drive up costs and slow Maine home construction

(WGME)- Tariffs on Canadian lumber, if they go into effect in 30 days, could inflate the costs for developers and slow down home construction, which is badly needed.

Maine imported more than $200 million of wood from Canada in 2024, according to the U.S Department of Commerce.

With a 25% tariff, that would potentially tack on more than $54 million.

Owner of Great Northern Builders, Maya Srinivasan, says the tariffs could create a tipping point for many consumers in Maine.

“If you look at one of our jobsites I can tell you most of the lumber of it is stamped product of Canada,” said Srinivasan.

She says a 25% tariff is risky for her business.

“We have never had an escalation clause in our contract. We say if we did your project, we are going to hold and honor those prices. And that has been hard to do,” said Srinivasan.

The cost of lumber, just to frame a 1,000 square foot home, can range between $3,000 and $6,000, according to HomeGuide data.

“What would this mean for consumers?” CBS13 reporter Aysia Reed asked.

“We are starting to get out of the reach for a lot of homeowners and I think this would put it out of reach for many more,” said Srinivasan.

Seacoast Hardwood Lumber and Plywood Owner, Chris Eckelman, is also uncertain of what’s to come for Maine’s lumber.

“I think that if there’s a lot of panic buying that’s gonna cause a severe shortage where I think we keep our heads about us I don’t think it’s gonna be a huge issue for most of my material,” said Eckelman.

There’s already a housing crisis in Maine and the cost of lumber could set that back even more.

A Maine Housing Production Needs study says the state needs 84,000 more homes by 2030.