A 50% tariff on Canadian softwood lumber has raised costs by over 45%, adding about $10,900 to new home construction expenses, with lumber accounting for $4,900. Canada supplies 85% of U.S. softwood lumber imports. Tariffs and counter-tariffs are increasing prices and uncertainty, causing fewer housing starts and labor shortages. Builders face rising wages and supply chain issues. Locking in material prices now and exploring domestic alternatives is advised to mitigate rising costs.