Tariffs create new uncertainty for builders
Recent tariff developments could create more uncertainty for home builders over building material supply chains and pricing.
On July 20, President Trump imposed a 50% tariff on a broad range of Canadian goods, including cement, plywood and furniture. The action would not affect other existing tariffs on key building materials, including softwood lumber, steel, aluminum and copper.
The tariffs on Canadian products are set to take effect in 30 days. They would be imposed under Section 338 of the Tariff Act of 1930, which allows tariffs of up to 50% on imports from countries that discriminate against the United States.
Trump said the tariffs are in response to Canadian tariffs on U.S. cars, dairy and alcohol products. Unlike previous tariff actions, goods covered by the U.S.-Canada-Mexico Agreement would not be exempt.
The 30-day delay gives the United States and Canada time to negotiate an agreement that could avert the tariffs.
Section 122 Tariffs Expire | New Levies Imposed
Meanwhile, the temporary 10% global tariffs Trump imposed in February under Section 122 of the Trade Act of 1974 expired on July 24. Those tariffs came after the Supreme Court struck down his authority to impose tariffs under the International Emergency Economic Powers Act.
To replace the expiring Section 122 tariffs, the administration announced new duties under a different authority. Citing a ban on imports made with forced labor, the Office of the United States Trade Representative released a fact sheet stating that the U.S. will impose tariffs of 10% to 12.5% on imports from 60 nations under Section 301 of the Trade Act of 1974, which targets unfair trade practices affecting U.S. commerce. The new duties took effect July 24.
The new tariffs will apply to most imports from the 60 nations. Exemptions include some products, such as oil, gas and fertilizer, as well as goods that qualify for duty-free treatment under the U.S.-Canada-Mexico Agreement.
Additional tariffs could also be coming. The administration is still investigating whether 16 nations have engaged in excess manufacturing, driving down prices and putting U.S. companies at a competitive disadvantage.
Canadian Softwood Lumber Tariffs Set to Fall
In a positive development, the U.S. Commerce Department is poised to lower anti-dumping and countervailing duties on Canadian softwood lumber imports from a combined 35% to 25% in mid-August.
The decision is part of the regular review process the United States uses to provide relief to American companies and industries affected by unfair trade practices.
NAHB continues to closely monitor the changing tariff landscape. With housing affordability already near historic lows, we continue to urge the Trump administration to exempt building materials from its broader tariff strategy and avoid new trade barriers that could worsen the housing crisis.
PRESIDENT'S MESSAGE
Rally Day Valued Experience for All Members
Every other year, members of the Texas homebuilding industry have a unique opportunity to take our message directly to the people who make decisions that impact our businesses. I encourage every El Paso Association of Builders member to join us in Austin for the Texas Association of Builders' Rally Day on February 23, 2027.
Rally Day gives members the opportunity to meet face-to-face with elected officials, learn about current legislative priorities, and share real-world experiences from the front lines of the housing industry. Those personal conversations help lawmakers understand how proposed legislation affects builders, developers, suppliers, and ultimately Texas families seeking attainable housing.
Before attending my first Rally Day, I understood the importance of advocacy in theory. After experiencing it firsthand, I came away with a much greater appreciation for the impact our voices can have. Sitting down with our state representatives and their staff to discuss the challenges facing the homebuilding industry was invaluable. Those conversations weren't political debates—they were meaningful discussions about housing affordability, workforce development, infrastructure, and the regulations that directly affect our ability to build homes and serve our communities.
As EPAB members, we are fortunate to have strong representation at the local, state, and national levels, but advocacy only works when members participate. Legislators want to hear directly from the people creating jobs, investing in our communities, and helping Texans achieve the dream of homeownership. There is simply no substitute for being in the room and telling our story.
I can personally say that Rally Day was one of the most rewarding experiences I've had as part of our association. I left Austin with a better understanding of the legislative process, stronger relationships with our elected officials, and confidence that our industry's voice truly matters.
I hope you'll join your fellow EPAB members next February. Together, we can ensure the homebuilding industry has a strong voice at the Texas Capitol and continue protecting the future of housing in Texas.
EXECUTIVE MESSAGE
HomePAC Matters to Every Member
Message from acting EPAB Executive Vice President
Edgar Garcia
2020 President - 2026 Vice President
El Paso Association of Builders - Bella Vista Homes
One of the greatest benefits of belonging to the El Paso Association of Builders is that your voice extends far beyond our local community. Through our partnership with the Texas Association of Builders (TAB), we have a seat at the table when decisions are made in Austin that directly affect our businesses, our employees, and our community. One of the most effective tools in protecting that voice is HomePAC.
It's easy to think of political action committees as something that only matters during election season. In reality, HomePAC works year-round to support pro-housing candidates who understand the challenges facing the residential construction industry. By helping elect leaders who recognize the importance of attainable housing, reasonable regulations, and a strong construction economy, HomePAC helps ensure our industry has advocates in the Texas Capitol when critical legislation is debated.
Consider this: imagine a proposal that would add unnecessary regulatory costs to every new home built in Texas. Even a seemingly modest increase can ripple through the industry, making homes less affordable, slowing projects, and impacting everyone from builders and subcontractors to suppliers and lenders. Thanks to TAB's advocacy efforts, supported by HomePAC, countless harmful proposals have been defeated while legislation benefiting housing has advanced. In fact, TAB estimates its state advocacy efforts can save the industry as much as $15,000 per home start.
HomePAC is funded entirely through voluntary personal contributions from members who understand that advocacy is an investment—not an expense. Every contribution, regardless of size, strengthens our industry's ability to protect homeownership, support responsible growth, and preserve a healthy business climate across Texas. Click here to donate.
As EPAB members, we all benefit when HomePAC is strong. Together, we can ensure that the voice of the home building industry remains heard where it matters most.
Acquisitions Increasing Among Home Builders
The number of home builders reporting that they have been approached has doubled in less than a year, according to recent results from the NAHB/Wells Fargo Housing Market Index (HMI) survey.
In challenging economic environments, there is often consolidation among home builders, with larger companies (or investors) looking to enter new markets or offer different products. This trend is already accelerating at the high end of the market. So far in 2026, for example, Taylor Morrison was acquired by Berkshire Hathaway; Tri Pointe Homes by Sumitomo Forestry; and United Homes Group and Holiday Builders by Stanley Martin Homes.
To better understand the extent of this phenomenon across a representative sample of home builders in the country, the HMI survey asked about merger and acquisition activity in August 2025 and again in June 2026.
Results reveal an uptick in the share of builders reporting increased M&A activity in their local markets, from 14% in August 2025 to 21% in June 2026.
But we may see more completed deals in the near future as more builders are reporting being approached for potential mergers or acquisitions.
The share of builders who have been approached for an acquisition and/or merger doubled between August 2025 and June 2026, from 9% to 18%. As a result, the segment who have not been approached at all dropped from 87% to 78% during this period.
When asked about future plans for growth, most builders (61%) plan to expand organically in their existing markets. Only small minorities plan to expand by acquisition (6%) or to be acquired by another company (5%).
