Trump's trade war could mean another housing price jump

BELLEVUE, Wa. -- It was supposed to be Mexico.

Then China.

And maybe NATO, or something in Europe.

But Canada?

On Tuesday, the Trump administration moved forward with higher tariffs on imported Canadian lumber.

Anything that can help jobs and bring down the price of housing is a good thing for Western Washington.

This may not be it, say experts.

“This is going to be another shot that’ll be tough to swallow,” said Mike Pattison.

He represents the Master Builders Association, a local trade association comprised of builders, remodelers, suppliers, manufacturers and service providers to the building industry.

An estimated 30 percent of lumber for sale in the states comes from Canada.

“We’re just looking at the bottom line,” Pattison said.

After campaign rhetoric fired up, few thought Canada would be Trump’s first serious target on trade -- our largest economic partner.

The 24 percent tariff on incoming Canadian wood would bring in an estimated $250 million.

U.S. Commerce Secretary Wilbur Ross says the Canadian provinces game the fair trade system by setting prices differently than the free market, undercutting Americans.

“And then that lets them charge a subsidized low price when the product hits the U.S. border,” Ross said.

Pattison agrees that the Canadian lumber is cheaper, but with home affordability at absurd levels, an “America First” political move is a pocketbook killer for many here.

“We’re already in a very difficult market. It’s going to be very difficult for home buyers to absorb more cost,” Pattison continued.

Those costs are also on the mind of British Columbians. Their premier is matching the heated political talk of our administration.

“We will only accept an agreement with the United States that is good and fair for B.C. workers. We will fight and we will win,” said Premier Christy Clark.

And houses could just be the beginning.

“If we have to pay more, we’re going to but it is going to be passed onto the home buyer, and that’s the person who’s really going to suffer,” Pattison said.