MILWAUKEE — U.S. companies importing lumber from Canada and Mexico are preparing for a 25% tariff, a cost that could impact the construction industry.

With Canada being one of the world’s largest producers and exporters of softwood lumber, Wisconsin builders are preparing for potential price increases. According to the National Association of Home Builders, lumber prices are already 14.4% higher than they were at this time last year.

Eli Bliffert, owner of Bliffert Lumber, a family business that has operated for more than a century, said the new tariffs add uncertainty to an already fluctuating market.

“We don’t know how long the tariff will be in place, and for us, lumber is the most important thing,” Bliffert said.

His company imports about 60% of its lumber from Canada, a necessity due to supply limitations in the U.S.

“There is not enough timber land and mills in the U.S. to meet demand. We need Canadian lumber, and for the northern part of the country, it’s much easier to source from Canada,” he explained.

The tariffs have led to questions among customers, especially those in the middle of construction projects.

“They’re asking if they should pre-pay for lumber, and we tell them no,” Bliffert said. “The market goes up and down all year long, driven more by supply and demand than tariffs and it always evens out in the end.”

Brian Jacobsen, Chief Economist at Annex Wealth Management, said that 30% of U.S. lumber originates from Canada.

“There are domestic sources, but it doesn’t seem like it is all that flexible to meet the needs of the construction demand,” Jacobsen said.

Despite some concerns, he advised people not to panic.

“Stay tuned, because things can change very quickly,” he said.

Bliffert said he remains confident that the industry will adjust, just as it has in the past.

“I’m fifth generation. We’ve been here 125 years and things like this happen. We’ve made it through the Great Depression and we made it through both world wars and we will make it through an administration that likes to use tariffs for economic policy. There is no need to panic,” he said.

For now, Wisconsin lumber suppliers and builders are keeping a close eye on market trends, as the industry navigates yet another shift.