United States-Mexico-Canada Agreement
The U.S.-Mexico-Canada Agreement (USMCA) — a free trade treaty that President Trump negotiated in his last term to replace NAFTA — went into effect on July 1, 2020.
Building quality, affordable housing for all Americans depends critically on the free and fair trade of building materials with two of our top trade partners — Canada and Mexico. Each year, the U.S. residential construction and remodeling industries rely on tens of billions of dollars in building materials sourced from these two countries. These materials are not simply the constituent parts of a home; they also represent jobs for Americans building those homes.
The price volatility of these imported materials and equipment, driven by policy uncertainty, needlessly drives up housing costs and exacerbates the nation’s housing affordability crisis.
Tariffs on building materials will affect housing affordability as well. Currently, USMCA-compliant goods — including softwood lumber and gypsum — are not included in tariffs on Canadian and Mexican goods. However, even the threat of tariffs creates an uncertain business climate.
Key Building Products from Canada and Mexico
Key imports from Mexico and Canada help U.S. builders construct homes for families across America.
Product | Annual Imports | Country |
Softwood Lumber | $5.1 Billion | Canada |
AC Units | $1.3 Billion | Mexico |
Light Fixtures | $1.06 Billion | Mexico |
Thermostats | $557 Million | Mexico |
Asphalt and Wood Shingles | $533 Million | Mexico |
Gas Ranges | $494 Million | Mexico |
Gypsum | $327.2 Million | Mexico |
Wooden Doors | $217 Million | Canada |
Ceramic Bathtubs | $124 Million | Mexico |