NBMDA Statement on Proposed Tariffs

The North American Building Material Distribution Association (NBMDA) this week released a statement opposing new tariffs proposed by the Trump Administration on building materials:

For more than 70 years, the North American Building Material Distribution Association (NBMDA) has represented a network of distributors and manufacturers in the specialty building material supply chain, pursuing our mission of promoting the effectiveness and value of distribution, improving member operations, and facilitating the growth of member businesses.

Through our work of fostering connections, providing professional development opportunities, and delivering high-quality industry intelligence, NBMDA remains steadfast in our commitment to ensuring all our members across North America have the resources necessary to navigate the ever-changing regulatory landscape.

With the recent tariff activity by the Trump Administration, the North American building material supply chain is facing severe disruptions and uncertainty at a crucial time. As a community, and for the reasons stated below, we oppose the implementation of the proposed new tariffs on building materials.

1. The United States is currently facing a housing crisis and building materials are critical for commercial and residential development projects. Tariffs on building materials will result in inflationary pricing, which will end up being passed along to those who drive our business — our customers and, ultimately, the consumer.
2. As the crucial link in the building material supply chain, distributors are faced with the significant risk of taking on high-priced inventory to maintain supply for their customers. Should tariffs be rescinded, that existing inventory would create a lag effect and continue to keep prices high for months to come.
3. Domestic production does not have the capacity to meet market demand. The North American supply chain for building materials — particularly between the United States and Canada — is inextricably linked and has matured over the course of decades to provide substantial mutual value. The process of adding domestic production capacity would be measured in years, not weeks or months.

These tariffs will stymy demand for building materials and severely hinder the growth of both our communities and the bottom lines of our small businesses. 

NBMDA is currently monitoring the situation as it develops on a daily, sometimes hourly basis. While advocacy has not historically been a part of NBMDA’s mission and programming, our association has always been willing to evolve to meet the needs of our members and to ensure the long-term sustainability and success of our channel.

Accordingly, and in response to current events, during next month’s NBMDA Board of Directors meeting we will discuss how the organization will develop and implement an approach to advocacy that will enable us to more actively represent our members’ interests in the national policy and regulatory arena. In the interim, we are coordinating with the efforts of like-minded trade groups which will reinforce our position that tariffs are harmful to our industry as well as the greater supply chain.

We will provide an update to the membership in early May — and in the meantime we invite you to stay engaged with NBMDA and connect with us at info@nbmda.org if you have any insights or concerns.

Sincerely,

Jon Minnaert
President, NBMDA Board of Directors
President, Aetna Building Solutions

Michael Wilbur
Executive Vice President, NBMDA