A Forgotten Trade Spat With Canada Is Costing U.S. Homebuilders
- Softwood-lumber duties boost expenses amid virus outbreak
- ‘This year, there’s no hope of anything getting negotiated’
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As a wave of pent-up homebuying emerges across the U.S., a pesky and oft-forgotten trade dispute with Canada is boosting building costs.
A long-simmering spat between the U.S. and Canada over softwood lumber is adding to the expenses homebuilders face in the fallout from disruptions related to the coronavirus pandemic, said David Logan, director of tax and trade policy analysis for the Washington-based National Association of Home Builders. Lumber mills in the Pacific Northwest cut production amid lockdowns, and builders are buying more wood from Canada, he said.