As Massachusetts grapples with a critical shortage of housing, the Trump administration's 25% tariffs on key building materials such as steel, aluminum, and softwood lumber have sparked concerns about the potential impact on construction costs.

Canada, which is a vital supplier of approximately 30% of the lumber used in the U.S., plays a central role in the U.S. housing market. The tariffs, which affect the imports of steel, aluminum, and softwood lumber, have drawn alarm from both homebuilders and remodelers in Massachusetts.

"We're fighting, trying to find ways to make housing affordable, and this is going to go the wrong way," said David O'Sullivan, president of the Massachusetts Home Builders & Remodelers Association. O'Sullivan is particularly concerned about the tariffs' potential to drive up construction costs, which could ultimately place a heavier financial burden on home buyers.

"Even steel and aluminum are going to affect them greatly, because steel goes into most multifamily housing," he added, emphasizing how even materials not directly associated with housing frames could still result in significant cost increases.

Meanwhile, Chris Moynihan, owner of Moynihan Lumber in Beverly, noted that his business has not yet felt the full force of the tariffs but warned that they could lead to uncertainty in the market. "You don't see it, necessarily, in the spot pricing, you see it in the futures pricing. There was a spike initially, and then it dropped," Moynihan explained. "To me, this is fear, and nothing more."

While Moynihan believes the impact on lumber prices might be contained, he acknowledged that many large commercial and multifamily home builders in Massachusetts rely on direct shipments of lumber from Canada. He also pointed out that lumber only represents a small fraction of the overall cost of building a home.

"There's a lot that goes into a house, not just lumber coming from Canada," Moynihan said. "That typically would represent somewhere in the vicinity of 2-3% of the total cost." He remains somewhat confident that the tariff-related disruptions will not cause substantial long-term damage to construction costs in the region.

Despite the varied opinions on how these tariffs will ultimately affect the industry, both O'Sullivan and Moynihan stress the importance of closely monitoring developments. "All of that fear has seemed to have subsided, and there seems to be a wait-and-see," Moynihan said, suggesting that the market is taking a cautious stance as it awaits further clarity on the situation. "Let's see what's going to happen between the two countries and what's going to come out of this."

O'Sullivan, however, remains less hopeful. "It is a wait-and-see, I don't think it's going to be good for the industry," he said, suggesting that the long-term effects of the tariffs could ultimately hinder efforts to address the state's housing shortage.

The tariffs are scheduled to go into effect next month, though the White House has hinted that ongoing negotiations with Canada could lead to adjustments.

Originally reported by Mary Markos in NBC 1O Boston News.