Tariffs Keep Squeezing Lumber Costs as 2026 Builder Season Continues
Sawmill lumber prices are on track for a modest but persistent rise in 2026, driven largely by ongoing Section 232 tariffs on Canadian lumber imports, according to industry data. Even though domestic producers supply the large majority of sawmill lumber consumed in the U.S., which limits the overall price impact, the tariff-driven cost pressure continues to filter through to builders — compounding a lumber market that’s already been volatile for years.
Trade-focused market data through the year shows lumber futures swinging between roughly $530 and $700 per thousand board feet over the past twelve months, reacting to mortgage rate moves, housing starts data, and shifting tariff policy in close succession. Builders trying to budget material costs for projects spanning multiple quarters have had a genuinely difficult environment to plan around.
Source: IBISWorld, “Producer Price Index: Sawmill lumber” industry data, 2026 — https://www.ibisworld.com/us/bed/price-of-sawmill-lumber/4103/
