President Trump recently made headlines with his claim that America has “all the trees” it needs, brushing off the idea of relying on Canadian imports. But experts say cutting off or taxing Canadian lumber could make the housing crisis even worse.

The U.S. is home to about 300 billion trees, but not all of them are suitable for building homes. Softwood lumber—often used for framing, roofs, and siding—is in high demand, and Canada supplies about 30% of what the U.S. uses annually. With Trump slapping a 25% tariff on Canadian imports, plus existing duties, the cost of softwood lumber could skyrocket.

Homebuilders and economists warn this could hit homebuyers hard. “Tariffs on lumber are ultimately paid for by new homeowners,” said Nick Erickson of Housing First Minnesota. Higher material costs could push already skyrocketing home prices even further out of reach.

The housing shortage is already a major issue, with supply lagging behind demand. Natural disasters like hurricanes and wildfires have only made things worse by destroying thousands of homes. At the same time, building material costs have been rising steadily.

While some hope the U.S. could boost its own lumber production, expanding the industry isn’t simple. Opening new sawmills takes time and regulatory approval, and there’s a chronic labor shortage in the construction sector. “It’s not impossible, but it takes time and policy changes,” said Robert Dietz of the National Association of Home Builders.

Historically, tariffs on Canadian lumber have hurt consumers more than they’ve helped domestic producers. For example, a past U.S.-Canada lumber agreement led to higher costs for American homebuyers while benefiting U.S. producers by just $1.6 billion.

Despite the challenges, some remain optimistic. Housing advocates point to bipartisan support for easing regulations to increase housing affordability. As Erickson put it, “This housing shortage has created a rare moment of unity across party lines.”

Still, with tariffs looming and housing costs already sky-high, the road ahead for American homebuyers looks tough.