'This house comes from Canada' | How tariffs on Mexico, Canada could impact the prices of homes

MONTGOMERY, Ohio — President Donald Trump agreed to a 30-day pause on Monday regarding his tariff threats against Mexico and Canada.

The pause provides a cool-down period after an executive order directed 25% tariffs on imports for America's two largest trading partners, and another 10% tariff on Canadian oil, natural gas and electricity.

Trump also ordered an additional 10% tax on imports from China. All of the tariffs were scheduled to start at midnight Tuesday, but Canada and Mexico threatened retaliation, raising the prospects of a broader regional trade war.

"Proposed tariffs will be paused for at least 30 days while we work together," Canadian Prime Minister Justin Trudeau posted Monday afternoon on X, saying that his government would name a fentanyl czar, list Mexican cartels as terrorist groups and launch a "Canada-U.S. Joint Strike Force to combat organized crime, fentanyl and money laundering."

The White House confirmed the pause, which followed a similar move with Mexico that allowed for a period of negotiations about drug smuggling and illegal immigration.

Some home builders are watching for a potential trade war between the three countries. Fry Homes is building two brand-new homes in Montgomery. The drywall is set on one of them and the foundation is set on both.

"This house comes from Canada," said Ben Fry.

Learn more about Mexico and Canada's impact on building below:

Before announcing a pause on tariffs, Trump said the U.S. "(doesn't) need the products that they have."

"We have all the oil you need," he said. "We have all the trees you need, meaning the lumber."

The National Association of Home Builders says more than 70% of the imports from Mexico and Canada are essential for home builders, including lumber. The organization urged the Trump Administration to reverse course on the plan for new tariffs saying it discourages new development and brings higher costs to the consumer.

"Some of those tariffs could add tens of thousands of dollars to the pricing of new homes," said Fry.

Lumber is a commodity traded on the open market, where the price changes based on supply and demand. There are other factors that impact the price including inflation and tariffs.

The Construction Buyers' United States Alliance (CBUSA), which tracks the price of building materials, tells WCPO 9 News, that right now, a 2x4 wall stud, which is a common product in a new home build and comes from Canada, sells between $3-4. A 25% tariff could raise the price between 50-60 cents. An average new home build can have up to 800 wall studs.

That uncertain market could impact Fry's customers over the next year.

"Also due to just land availability you have to pay more for the land and with the material availability that the pricing has been a little higher than it has been in the past so they are a little bit slower to move so they're just going to sit on our books a little longer," said Fry.