Lumber buyers placed unsuccessful bets on tariffs and interest rates Lumber prices have dropped by more than 14% from a record high in early August. Many home builders, contractors and retailers wagered that higher U.S. tariffs on imports would boost the cost of lumber, while lower interest rates would lift demand for the building material. But those bets have failed to pay off – and lumber prices have tallied a steep decline from a record high reached only three weeks ago. That price decline could lead to a drop in production at a time when home-building and housing demand starts to heat up. The demand component for spring 2025 was a “complete swing and a miss,” said Greg Kuta, at lumber broker Westline Capital Strategies. …On Tuesday, lumber futures for September delivery settled at $595.50 per thousand board feet. …Canadian mills are losing out with lumber prices well under the cost of production,” Kuta said.