March 3, 2025 • View in browser

Formerly "Dealer Digest," NLBMDA Weekly is the premier source of federal legislative, regulatory, and industry news for NLBMDA members.

25 Percent Tariffs on Canada and Mexico Will Go into Effect Tuesday

President Trump has confirmed that tariffs on imports originating from Canada and Mexico will go into effect on Tuesday. In a statement given to reporters, the President stated that there is “no room” for dealmaking to delay the tariffs again. The 25% tariffs were originally scheduled to go into effect in February though were delayed by 30 days following assurances by both Mexico and Canada that more resources would be placed at the border to address the flow of illicit substances.

The president is expected to address the tariffs and his broader trade strategy during his address to lawmakers on Capitol Hill tomorrow evening. NLBMDA remains in close contact with our strategic industry partners and will be closely monitoring the latest developments.

Corporate Transparency Act Update: FinCEN States March 21st Deadline Will Not Be Enforced.

The Financial Crimes Enforcement Network (FinCEN) has announced that it will not enforce the penalties under the Corporate Transparency Act (CTA), a significant win for small businesses and the LBM industry. In a press release published by the Treasury Department last week, FinCEN states that companies will not be penalized for failure to comply with the beneficial ownership information reporting requirements under the CTA.

FinCEN writes that it will now begin the process of evaluating how the CTA will be enforced signaling that potential revisions to the current reporting requirements may soon be coming. On or prior to March 21^st, FinCEN will update its guidance to extend reporting deadlines until after FinCEN completes its review. The agency has stated that it will solicit public comment during the rulemaking process. NLBMDA will closely monitor the new rulemaking and engage during the public comment period to ensure the perspectives of the LBM industry and the small business community are communicated.

Over the weekend, President Trump commended the Treasury Department for taking on action on the CTA. The CTA “has been an absolute disaster for Small Businesses Nationwide. Furthermore, Treasury is now finalizing an Emergency Regulation to formally suspend this rule for American businesses. The economic menace of BOI reporting will soon be no more,” said President Trump in a post on Truth Social.

Find our most recent update on the CTA here.

NLBMDA Announces U.S. House Majority Whip Tom Emmer (R-MN) to speak at Spring Meeting & Legislative Conference

NLBMDA is excited to welcome House Majority Whip Tom Emmer (R-MN) as a featured speaker for the Washington Briefing Breakfast at the 2025 Spring Meeting and Legislative Conference. Rep. Emmer has been a strong supporter of NLBMDA and we are honored to hear his commentary on the importance of the LBM industry and small businesses in his district and in Washington.

Join us from April 1-2 at the Westin Washington, D.C. City Center. The event will culminate with a day for you to conduct in-person meetings with your elected officials in Congress, making your voice heard on Capitol Hill. Register today!

Registration for the 2025 Pro Dealer Industry Summit is Now Open

NLBMDA and HBS Dealer are excited to announce that registration for the 2025 Pro Dealer Industry Summit is now open. Join us October 8-10 in Louisville Kentucky. This is an exclusive, live educational forum designed to promote the growth of lumber & building product dealers, distributors, wholesalers, and the manufacturers who supply them. LBM dealers will benefit from sharing insights and best practices from industry leaders. You won't want to miss:

Educational Panel Sessions
Insights from Industry Experts
Networking Opportunities
Off-Site Happy Hour Reception
Exhibitor booths
Lumberyard tour of Falls City Lumber

The Virginia Tech–USDA Forest Service Released Housing For December 2024

This month’s commentary contains 2025 housing forecasts, applicable housing data, remodeling commentary, and United States housing market observations. Housing data, in aggregate, month-over-month and year-over-year were mixed. On a month-over-month basis single-family starts and permits, total and multi-family permits, single-family completions, spending, and existing and new house sales were positive. Year-over-year, multi-family permits; completions, construction spending, and existing and new house sales were positive. The influence of mortgage rates is evident, as aggregate costs have decreased affordability, and the “lock-in” effect have obfuscated sales. The influence of mortgage rates is evident, as aggregate costs have decreased affordability, and the “lock-in” effect have obfuscated sales.

The Rising Costs of Homeownership Are Increasing Burdens, Says JCHS

The Joint Center for Housing Studies of Harvard University (JCHS) released a new research brief assessing housing affordability concerns. While high home prices and mortgage interest rates have forced first-time buyers to stretch their budgets, longtime homeowners are increasingly burdened by rising costs for home insurance, property taxes, utilities and routine maintenance of their homes. The greatest burdens are being shouldered by those with the lowest incomes, many of whom are older adults on fixed incomes or single-person and single-parent households relying on a single income. These homeowners have few options available to get immediate help paying housing-related bills, although several programs offer financial support for home improvements that can offer longer-term gains, such as for urgent repairs, weatherization, energy efficiency, or increased accessibility. With costs of homeownership rising and the number of households with burdens growing, demand for these programs will be necessary to keep homeowners safely and securely housed.

Freddie Mac Reports A Continuing Drop In Mortgage Rates

On February 27, 2025, Freddie Mac released the results of its Primary Mortgage Market Survey (PMMS), revealing that the 30-year fixed-rate mortgage (FRM) averaged 6.76%, down from 6.85% the previous week and lower than the 6.94% recorded a year ago. The 15-year FRM also declined, averaging 5.94% compared to last week’s 6.04% and last year’s 6.26%. The PMMS focuses on conventional, conforming, fully amortizing home purchase loans for borrowers with excellent credit who make a 20% down payment.

“This week, mortgage rates decreased to their lowest level in over two months,” said Sam Khater, Freddie Mac’s Chief Economist. “The drop in mortgage rates, combined with modestly improving inventory, is an encouraging sign for consumers in the market to buy a home.”

International Longshoremen’s Association Membership Ratify New Contract Agreement

On February 25, rank-and-file members of the International Longshoremen’s Association (ILA) voted to ratify a new six-year master contract that will allow port operations along the Eastern Seaboard to continue without disruption. The ratification of the new contract was preceded by a turbulent few months which included a three-day port strike in October 2024.

NLBMDA, in partnership with over 200 trade associations, remained closely involved during the entirety of the contract dispute period. NLBMDA sent letters to administration officials and to the lead negotiators at ILA and the U.S. Maritime Alliance (USMX) outlining the numerous consequences a port strike would have on the broader U.S. economy. In early January ILA and USMX resumed formal contract negotiations with a tentative agreement being reached on January 9^th. The new agreement includes protections against full automation at ports, a non-negotiable clause for ILA which led to the initial impasse. Also included in the new agreement is a sixty-two percent wage increase as well as several benefit increases.

USMX and ILA will hold a formal signing of the new agreement on Tuesday, March 11^th.

Trump Signs Executive Action Targeting Lumber Imports

The White House has issued an executive memorandum targeting lumber imports. The new directive, which was released by the Administration on Saturday, orders the Commerce Secretary to evaluate, “national security risks associated with imports of timber lumber and their derivate products.” The announcement follows similar investigations announced into copper, aluminum, and steel imports.

The order instructs the Secretary of Commerce to report to submit a report to the President that includes:

findings on whether imports of timber, lumber, and their derivative products threaten national security;
recommendations on actions to mitigate such threats, including potential tariffs, export controls, or incentives to increase domestic production; and
policy recommendations for strengthening the United States timber and lumber supply chain through strategic investments and permitting reforms.

NLBMDA will closely monitor these developments and engage with trade association partners and stakeholders in Washington.

Congressional Leaders Work to Avoid Government Shutdown as March 14^th Deadline Nears

Lawmakers on Capitol Hill have only 11 days to reach agreement on an appropriations bill that would continue to fund the government beyond next Friday, March 14th. Speaker Mike Johnson (R-LA) has signaled a preference to pass “clean” continuing resolution through the end of fiscal year. A continuing resolution (CR) is a measure which allows Congress to keep the government funded without going through the traditional appropriations process. A CR can run as short as a single day or be as long as the entirety of the fiscal year. For FY2025, Congress has already passed two CRs, most recently in December which extended government funding through March 14th.

Unlike the budget reconciliation process which would not require support from Democratic lawmakers, Republicans will need to work with Democrats to surpass the Senate’s 60 vote filibuster threshold. Recognizing this, Johnson has suggested Congress work to pass a clean CR. The term is relatively new in Washington and stems from the last CR negotiations when then President-Elect Trump and Elon Musk criticized the first agreed iteration of a government funding bill which included a slew of additional pieces of legislation that amounted to the draft CR being over 1,500 pages long. A “clean” CR is largely devoid of these additional legislative provisions and primarily includes language which allows for the extension of current funding levels for a finite period of time.

Democratic leadership has been noncommittal regarding potential support for a new government funding bill. Until an agreement is reached the budget reconciliation bill along with many of President Trump’s legislative priorities will be placed on the backburner in order to prevent a government shutdown. During the first Trump administration, gridlock in Congress resulted in the longest government shutdown in U.S. history, ending after an agreement was reached on the 35th day of the shutdown.

President Trump to Address Lawmakers in Joint Session to Congress

Tomorrow, President Trump will arrive on Capitol Hill to deliver a joint address to lawmakers. The President will be given a prime-time audience and the attention of Congressional leaders to promote his Administration’s ambitious legislative agenda. The address comes as both chambers are working to advance two separate reconciliation bills which target separate parts of the White House’s legislative agenda. Recently, Trump signaled preference for the House’s ‘one big, beautiful bill’ approach which would include an extension of the 2017 Trump tax cuts and funding for border security, energy, and other provisions.

U.S. Trade Representative Announces 2025 Trade Policy Agenda

Today, the Office of the United States Trade Representative (USTR) released President Trump’s 2025 Trade Policy Agenda which details USTRs work to advance the White House’s trade agenda, including how the Administration plans to evaluate the U.S.’s relationship with key trading partners. The agenda promotes the return to a “Production Economy”, a phrase used to define manufactured goods, agricultural products, services, and knowledge. Additionally, the Agenda outlines how USTR plans to comply with the White House’s America First Trade Policy executive order. The agenda calls for a review of existing trade agreements to, “guarantee that those agreements operate in the national interest.”

The USTR is led by Jamieson Greer, a veteran of the first Trump administration. Greer was confirmed by the Senate last week.

HUD Withdraws Biden-era Rulemaking

Housing and Urban Development (HUD) Secretary Scott Turner has announced the termination of the Affirmatively Furthering Fair Housing (AFFH) proposed rule stemming back from the Biden Administration. The rulemaking intended to strengthen regulations under the Fair Housing Act (FHA) to ensure measures are taken to combat discrimination in the housing sector.

Secretary Turner stated the termination of the rule would provide regulatory relief for the housing sector. “By terminating the AFFH rule, localities will no longer be required to complete onerous paperwork and drain their budgets to comply with the extreme and restrictive demands made up by the federal government. This action also returns decisions on zoning, home building, transportation, and more to local leaders,” Turner said in a statement. Turner also confirmed that HUD would continue to fulfil its statutory obligations under FHA.

Labor Secretary Nominee Discusses PRO Act Under Trump Administration in Senate Confirmation Hearing

In February, Lori Chavez-DeRemer testified before the Senate Committee on Health, Education, Labor and Pension (HELP), a key step in the nomination process as the Senate continues to advance President Trump’s political appointees. Chavez-DeRemer has received criticism from some Republican lawmakers for previous support for pro-union legislation when Chavez-DeRemer served in Congress.

A central topic was Chavez-DeRemer’s support for the PRO Act, legislation which would enact sweeping reforms to existing labor laws that would have a significant impact on the small business community. NLBMDA has opposed the PRO Act each time it has been reintroduced in Congress. Chavez-DeRemer acknowledged the bill’s flaws and emphasized the difference between her role as a legislator and as a member of the President’s cabinet. “I recognize that that bill was imperfect,” Chavez-DeRemer said to the committee. “If confirmed, my job will be to implement President’ Trump’s policy vision. And my guiding principle will be President Trump’s guiding principles.” The HELP Committee advanced Chavez-DeRemer’s nomination out of committee last week and a full floor vote is expected soon.

Wilson Lumber has acquired Nashville Lumber

Wilson Lumber Company has reached an agreement to acquire Nashville Lumber, a supplier of lumber and building materials located near Nashville, Tennessee. Per the company, the acquisition expands Wilson’s ability to serve builders, contractors and construction professionals in the region and will expand its market footprint to better serve customers in Tennessee.

Boise Cascade appoints new SVP of Western Operations

Boise Cascade Company says that Nathan Sikes has become the new Senior Vice President of Western Operations for its Building Materials Distribution (BMD) division. In this role, Sikes will be responsible for BMD’s facilities and door shops located in the Western and Pacific Regions.

How Orgill is approaching sales, merchandise in 2025 and beyond

At Orgill’s 2025 Spring Dealer Market, one product trend is clear: There are lots of new items available to retailers. In fact, Orgill paraded out more than 3,000 new products, ranging from Pro tools to hardware to farm and ranch supplies, at its New Orleans show.

A live look from Orgill's 2025 Dealer Market

Thousands of retailers have gathered in New Orleans to attend Orgill's three-day show, Feb. 20 - 22. Following Thursday morning’s official event opening, attendees perused nearly 1 million square feet of products, as well as a slew of vendors and service providers (more than 1,200 exhibitors in total, per Orgill).

Boise Cascade points to investments

In January 2024, Boise Cascade announced a $140 million commitment for improvements in its Louisiana and Alabama manufacturing facilities. That investment is beginning to product results, supporting and growing with customers across the U.S. and Canada, the company said.

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