US trade tariffs changed several times in 2026, and building materials have been caught up in it. Steel, aluminium, copper and timber products all carry extra duties, and a new trade fight with Canada started in August. Even if you do not work in the US, these moves can affect prices and supply where you are.
Which US tariffs hit building materials
The main tariffs on building products use a law called Section 232. From 6 April 2026, the rules for steel, aluminium and copper changed. According to law firm White and Case, the rates are now:
- 50% on items made entirely or almost entirely of steel, aluminium or copper.
- 25% on products that contain these metals but are not mostly metal.
- 10% for qualifying products made with metal smelted or melted in the US.
The tariff now applies to the full value of the product, not just the metal in it. Hundreds of low-metal items were taken off the list.
Timber products have their own Section 232 tariffs, which started on 14 October 2025. Softwood timber and lumber carry an extra 10%. Kitchen cabinets, vanities and upholstered wooden furniture carry 25% until 31 December 2026. From 1 January 2027, cabinets and vanities are set to go to 50% and upholstered furniture to 30%, unless a country reaches a deal with the US.
A court ruling reshuffled other tariffs
On 20 February 2026, the US Supreme Court ruled that a law called IEEPA does not let the President set tariffs. That struck down the broad “reciprocal” tariffs and the emergency tariffs on Canada, Mexico and China. The Section 232 tariffs on metals and timber were not affected.
The government then used a different law to put a temporary 10% tariff on most imports from 24 February. That expired on 24 July 2026. It was replaced by new Section 301 tariffs on 60 economies, mostly at 10% or an extra 12.5%. Goods already under Section 232 tariffs are treated separately.
What it is doing to US costs
The Associated General Contractors of America says prices for inputs to non-residential building rose 7.1% in the year to July 2026. Steel mill products were up 22.5%, aluminium mill shapes 40.5%, and copper and brass 18.4%. Lumber and plywood rose 9.9%. The AGC said many of these products face tariffs of up to 50%.
The National Association of Home Builders surveyed builders in May 2025. On average they estimated tariffs had added $10,900 to the cost of a home. The group has not released a newer estimate, saying it is waiting for the rules to settle.
Canada: lumber duties and a new tariff fight
Canadian softwood lumber has faced US anti-dumping and countervailing duties for years. On 14 October 2026, the US released final results of its latest review. For most Canadian producers, the combined rate falls to 24.75%, down from 35.16%. The new rates start once they are published in the US Federal Register. The 10% Section 232 timber tariff still applies on top.
Separately, the US put a 50% tariff on a list of Canadian goods from 22 August 2026. The list includes wood and paper products, metal items, plastics and machinery. Goods that meet the free trade agreement rules, and goods already under Section 232 tariffs, are excluded.
Canada hit back from 8 September 2026 with tariffs of 15%, 25% or 50% on more than 600 types of US goods, worth about $27.6 billion. These include steel and aluminium products and appliances. Canada also announced a C$7.5 billion support package. The Bank of Canada has said the counter-tariffs add to uncertainty.
Knock-on effects for other countries
- UK: UK steel and aluminium that would face the 50% rate now pays 25%, if it was melted, poured or smelted in the UK.
- Canadian buyers: the counter-tariffs cover some US steel, aluminium and appliances, so check prices on imported items.
- New Zealand and Australia: recent cost reports from Cotality point more to fuel, freight and metals prices than to tariffs directly. Prices for globally traded goods like steel and aluminium can still move with US demand.
What it means for your business
- If you buy US or Canadian products, ask suppliers whether tariffs are in their price and how long quotes hold.
- Cabinets and vanities imported into the US could get much dearer from January 2027. US kitchen and bathroom fitters may want to lock in prices early.
- Keep price-change clauses in your contracts for steel, aluminium, copper and timber items.
- Expect more changes. Tariff rules moved several times this year and may move again.
Sources
- United States modifies steel, aluminum, and copper Section 232 tariffs, White and Case
- Section 232 wood products tariffs stay at 25% through 2026, Ginger Control
- Supreme Court strikes down IEEPA tariffs: what now?, WilmerHale
- Tariff reset: Section 122 expires as Section 301 duties expand, UHY
- Softwood lumber: recent developments, Global Affairs Canada
- Section 338 tariffs on Canada take effect as Canada announces retaliatory response, Covington
- AGC: construction input costs climb 7.1% as war and tariffs drive up input costs, ConstructConnect
- How much tariffs add to the cost of a new home, HousingWire
This article is general information based on sources available in October 2026. Rules, prices and figures change, so check the current details with the official source where you work.