The Spring Street Brief

The U.S. Department of Commerce finalized antidumping and countervailing duty rates on Canadian softwood lumber at 24.75%, down from approximately 35.16% — but a separate 10% Section 232 tariff imposed by the Trump administration keeps the total effective duty burden at 34.75%. For LIHTC developers relying on wood-frame construction, the partial reduction is meaningful in direction but limited in immediate impact. This episode breaks down what the final ruling means for construction cost exposure, where the legislative response stands, and what affordable housing stakeholders should be...

Show Notes

The U.S. Department of Commerce finalized antidumping and countervailing duty rates on Canadian softwood lumber at 24.75%, down from approximately 35.16% — but a separate 10% Section 232 tariff imposed by the Trump administration keeps the total effective duty burden at 34.75%. For LIHTC developers relying on wood-frame construction, the partial reduction is meaningful in direction but limited in immediate impact. This episode breaks down what the final ruling means for construction cost exposure, where the legislative response stands, and what affordable housing stakeholders should be watching next.

Key Takeaways:

  • Commerce finalized antidumping and countervailing duties at 24.75% on October 13, 2026, down from ~35.16% — a reduction of roughly 10.4 percentage points.
  • A separate 10% Section 232 national security tariff on timber and softwood lumber remains in place, bringing the total effective duty rate to 34.75%.
  • New rates take effect upon publication in the Federal Register — the exact effective date is pending that publication.
  • The Commerce ruling stems from the seventh set of administrative reviews; preliminary findings were issued April 13, 2026.
  • The Housing Tariff Exclusion Act, introduced in both chambers, would exempt a broad range of home building materials — not just lumber — from current and future administration tariffs.
  • NAHB attributes the legislative introduction of the Housing Tariff Exclusion Act largely to its sustained advocacy against lumber and building material tariffs.
  • Wood-frame multifamily — the dominant construction type for LIHTC deals — remains directly exposed to elevated all-in lumber costs until either the Section 232 tariff is lifted or a new U.S.-Canada softwood lumber agreement is reached.

With housing affordability near historic lows and construction costs a persistent pressure point for LIHTC feasibility, the trajectory of lumber tariff policy will continue to shape pro forma underwriting well into 2027. Developers in early pre-development on wood-frame deals should stress-test cost assumptions against the current 34.75% total duty environment, not the reduced Commerce rate alone. The Housing Tariff Exclusion Act represents the most direct near-term legislative lever — stakeholders with federal relationships should engage now.

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