Tariff-Free
Proposed Senate Bill Would Exclude Building Materials from Tariffs
Everyone in the construction industry knows that the price and accessibility of materials drastically affects the affordability of buying a home. With the cost of building materials rising drastically in the wake of President Trump’s tariffs, it is no surprise that the industry is attempting to find another solution.
According to a joint study from the American Institute of Architects, the Associated General Contractors of America, and ConstructConnect® News, tariff-driven cost increases are causing delays and cancellations for some projects across the country. Steel prices are up 13%, aluminum is up 23%, and copper products have increased by 4.9% from last year. Additionally, approximately 85% of softwood lumber imported to the United States comes from Canada. As of late 2025, the cumulative tariff burden on Canadian softwood lumber exceeds 40%. With all of these statistics in mind, the National Association of Home Builders (NAHB) has estimated that recent tariff actions add an average of $9,200 in material costs per new single-family home.
The NAHB has worked alongside Senator Jacky Rosen, Nevada, and Senator Chris Coons, Delaware, to introduce legislation that would address the housing affordability crisis by creating an exemption process for building materials from tariffs. The Housing Tariff Exclusion Act would exempt many home building materials from President Trump’s current and future tariffs and allow importers to apply for tariff exemptions on home building materials that aren’t automatically exempted.
“The shortage of housing that Nevadans can afford is squeezing hardworking families’ budgets. We know that one way to address the affordable housing crisis is by making it easier and cheaper for developers to build more housing, but Trump has done the complete opposite over the past year by imposing cost-raising tariffs on virtually all homebuilding materials,” said Senator Rosen.
Senator Coons agreed and emphasized that the tariffs on building materials ultimately end with the increased costs being pushed onto consumers. While the tariffs have pushed some manufacturers to turn to United States suppliers and factories, that is not a possibility for many companies, and other manufacturers are reducing output or increasing prices on their supply.
“The NAHB commends Senators Rosen and Coons for working to address the housing affordability crisis by introducing legislation that would create an exemption process for building materials from tariffs,” said NAHB Chairman Bill Owens. “Roughly 60% of builders have already seen cost increases due to tariffs, which means higher housing costs for American home buyers and renters. This bill is an important step forward to create more certainty for American businesses and to address the nation’s housing affordability challenges.”
If it passes, the Housing Tariff Exclusion Act includes a list of products commonly used in home building for which the Secretary of Commerce must exclude tariffs within 15 days of application, and applies to all tariffs except anti-dumping and safeguard tariffs. Additionally, it requires the Secretary of Commerce to establish a process for United States businesses to request an exclusion from tariffs for goods used in home construction and allows businesses to apply for reimbursement of tariffs paid prior to an exclusion being granted.
Though the Housing Tariff Exclusion Act has not been passed yet, it would be a boon to not only manufacturers, but also to the construction teams and homeowners across the country that have been unable to move forward with their projects due to the current leap in pricing. The economy and taxes are always something that changes from administration to administration, but the brunt of the financial burden should not fall onto hard-working Americans who just want to buy homes.
Marcus Dodson
Editor & Publisher
