New Hampshire’s already struggling housing market could face further obstacles due to the ongoing tariffs imposed by the Trump Administration. Both enacted and threatened tariffs on Canadian lumber, along with other building materials from countries such as China, are contributing to an increase in costs and supply chain disruptions, ultimately slowing down housing construction across the state.

“There are real consequences for landowners, loggers, sawmills, and lumber yards in New Hampshire with this trade war, and it also hurts our ability to support the construction of the new housing that our state desperately needs,” said U.S. Rep. Chris Pappas, a Democrat representing New Hampshire’s 1st Congressional District. Pappas convened a roundtable discussion recently to examine the consequences of these tariffs, with participants from New Hampshire’s timber industry.

Since President Trump took office, the U.S. has implemented various tariffs targeting countries around the world. The most prominent tariff involved softwood lumber imports from Canada, a key component in homebuilding, with a 25% tariff imposed in March. Though delays were announced, the homebuilding industry remains on edge, waiting for further developments.

The impact of the tariffs is already being felt across the timber industry, which has an economic output of over $2 billion and employs 7,500 people in New Hampshire. Pappas noted that New Hampshire is especially vulnerable to retaliatory tariffs from Canada, as the state’s exports make up 7% of its GDP.

“These tariffs and trade wars could not have come at a worse time. As an industry still reeling from the last trade war in 2018 and COVID, which disrupted our operations, the last thing we need is more obstacles and additional costs,” said Jasen Stock, executive director of the New Hampshire Timberland Owners Association.

A new report from the New Hampshire Department of Business and Economic Affairs highlights the need for 32,704 new residential units by 2025 to meet market demands. However, the decrease in housing permits, coupled with the threat of further disruptions due to tariffs, adds to the challenges.

Joe Carrier, general manager of HHP Inc., a hardwood sawmill in Henniker, emphasized the uncertainty caused by these tariffs. “Canada and China are the two biggest countries we export to, which these tariffs have effectively shut off those markets for us, so as a business we are scrambling on how to continue to operate,” said Carrier.

Nationally, the National Association of Home Builders reports that tariffs on building materials are raising costs for American builders, homebuyers, and consumers. The association estimates that recent tariff actions have added an average of $10,900 to the cost of a new home.

In New Hampshire, homebuilders like Matt Mayberry, CEO of the New Hampshire Home Builders Association, have taken a wait-and-see approach. “We’re being very measured in our response to tariffs,” Mayberry explained. Some builders have stockpiled materials, anticipating potential shortages, while also staying cautious about the unpredictability of the situation.

For New Hampshire, the interplay of tariffs and the construction industry has created a perfect storm. The uncertainty surrounding supply chains and the escalating costs of materials continues to put pressure on the state's ability to meet housing demands.

“This has roiled the economy as a whole, depressing markets, raising the spectre of a recession, and putting a damper on hiring and new projects,” said Tedd Benson, founder of Bensonwood, a custom builder in Walpole. “We can’t play out our mission within the context of an administration that’s just tearing down our institutions and tearing down our economy.”

The impact of these tariffs, along with their potential for further escalation, is making it difficult for New Hampshire’s builders to remain agile and meet the state’s urgent housing needs.

Originally reported by Paul Briand in V News.