US tariffs on Canadian lumber and building materials just jumped 50%, hitting roughly $20 billion in imports. Combined with rising insurance and repair costs, renovations and roofing projects are about to get much more expensive. Lock in contractor bids now before prices climb further.
On Wednesday, the Treasury responded. Secretary Bessent announced it will at least double its bond buyback operations, from $2 billion to at least $4 billion each, targeting the 10- to 30-year part of the market, running September 9th through November 4th. Yields dropped about 9 basis points on the news. By Thursday, they drifted right back up, finishing the week near where they started. Here is the honest read: these buybacks are small against a $30 trillion market. Analysts said it plainly: lower yields cannot hold unless the fundamentals support them. The Treasury is signaling it is paying attention; it is not fixing the problem. Second item, and this one is fresh: trade talks with Canada collapsed Friday night. At 12:01 Saturday morning, 50% tariffs took effect on roughly $20 billion Of Canadian goods. Canada says it will match them dollar for dollar. Most coverage will focus on hockey sticks and wine. Here is why you should care. The covered goods include building materials, and the U.S. Trade Representative confirmed lumber was on the table in the failed talks. Canada is a major supplier of softwood lumber to this country. If those costs rise, they reach you fast. Turn costs, unit renovations, Roofing, deck repairs, and any capital projects scheduled for this fall or next spring. Remember last week, rents are forecast to grow by about 2% this year. Insurance is up 119% over 4 years. Repairs and maintenance are up 28% since 2021. This tariff lands directly on top of the fastest growing part of your operating statement. If you have a capital bid from earlier this summer, call your contractor Monday and ask whether that number still holds.
