Lumber, Steel, and Freight Are Squeezing the US Sauna Industry From Three Sides

US lumber futures climbed above $630 per thousand board feet in late June, their highest level since October 2025. US sawmill capacity fell 6% year over year in the first quarter of 2026. Many steel and aluminum products remain exposed to Section 232 tariff rates as high as 50%. And freight markets are tightening again as fuel, insurance, and carrier capacity pressures rise together.

For sauna manufacturers and importers, these are not four separate headlines. They are four walls of the same room.

The US sauna industry sits at the intersection of every major input-cost pressure now bearing down on American manufacturing: wood, metal, and freight. Much of the sauna-grade lumber sold in North America is Canadian softwood. Most commercial heaters contain steel and stainless steel components. And finished sauna cabins, whether built domestically or shipped from Estonia or Finland, are among the heaviest, bulkiest consumer goods on the road. Each cost line is rising independently. Together, they are compressing margins across the supply chain.

The Lumber Picture: Canadian Softwood Near 45%

The benchmark CME lumber futures contract surpassed $630 per thousand board feet in late June, driven by buyers rushing to secure supply ahead of revised US duties on Canadian softwood lumber. Timber Industry News reported that, despite Washington's decision to reduce preliminary antidumping and countervailing duty rates, most Canadian producers continue to face effective import duties approaching 45% until revised rates take effect in August.

Even after those revisions, the combined tariff burden on Canadian lumber entering the United States is expected to remain above 35%, once the existing Section 232 levy is included.

The Madison's Lumber Prices Index, which tracks key softwood species weighted by North American production volume, reached $538 per thousand board feet for the week ending June 26, up 3% from one month earlier. Western Spruce-Pine-Fir, the benchmark Canadian grade, held near $490 per thousand board feet, roughly 7% higher than a year ago.

That matters directly to sauna manufacturers because Western Red Cedar, the wood most closely associated with North American sauna construction, is a Canadian softwood species. It is harvested primarily in British Columbia, the province that accounts for the largest share of Canadian lumber exports to the United States. Every tariff action on Canadian softwood puts upward pressure on cedar pricing, whether or not cedar is the specific target.

Key Facts

US lumber futures hit $630 per thousand board feet in late June 2026, an eight-month high

Madison's Lumber Prices Index reached $538 per thousand board feet for the week ending June 26, up 3% month over month

Canadian softwood lumber faces an effective tariff burden near 45%, expected to remain above 35% after August revisions

Canada supplies roughly 25% of total US lumber consumption

US sawmill production capacity fell 6% year over year in Q1 2026, according to Federal Reserve and Census Bureau data cited by NAHB

Sawmill industry employment hit a 16-year low

Many steel and aluminum products remain subject to Section 232 tariff rates as high as 50%, with lower rates for some derivative and qualifying categories

Truckload rates moved higher through May and June as transportation capacity tightened

The Strait of Hormuz crisis has kept fuel, insurance, and route-risk pressure elevated around a waterway that normally carries roughly one-fifth of global petroleum liquids

The Canadian Chamber of Commerce estimates combined US tariffs on Canadian goods could add as much as $14,000 to the cost of building a US home by 2027

Domestic Supply Cannot Fill the Gap

The natural response to expensive imports is to buy domestic. But US sawmill capacity is moving in the wrong direction. The National Association of Home Builders reported that US sawmill production fell for the second consecutive quarter in Q1 2026, with full production capacity at domestic mills down 6.0% year over year. The utilization rate edged up to 71.8%, but only because capacity declined faster than output, according to Federal Reserve and Census Bureau data.

Industry employment hit a 16-year low. That means even if demand spikes, the labor force to ramp production is not readily available.

For sauna manufacturers who source dimensional lumber and tongue-and-groove paneling from US mills, the capacity decline translates into longer lead times and less negotiating room with suppliers. Builders competing for the same constrained domestic supply against the much larger residential construction industry are, by volume, a rounding error.

The Tariff Calendar Gets Worse Before It Gets Better

The Trump administration's decision on July 1 to forgo renewal of the United States-Mexico-Canada Agreement in its current form added a new layer of uncertainty. The USMCA remains in effect until 2036, but it will now be subject to annual reviews that could force renegotiation of major treaty sections.

Russ Taylor, president of Russ Taylor Global and one of North America's foremost lumber market analysts, has said that a USMCA lumber deal was unlikely to emerge in time. The Canadian Chamber of Commerce estimated that combined US tariffs on Canadian goods, including lumber, steel, and aluminum, could add as much as $14,000 to the cost of building a US home by 2027 if current duties remain in place.

The sauna industry's tariff exposure is not limited to raw materials. SaunaNews has previously analyzed which sauna brands carry the most direct tariff risk, and the Supreme Court's IEEPA ruling earlier this year reshaped the tariff picture for finished sauna imports from Europe. Manufacturers that import complete cabin kits from Estonia, Finland, or Germany face tariffs on the finished product. Manufacturers that build domestically face tariffs on the Canadian cedar and European hardware they buy as inputs. There is no clean way around the cost.

Steel and Aluminum Add a Second Front

Wood is the sauna's visible material. But commercial and residential sauna heaters are built around steel, stainless steel, and aluminum components: heating elements, frames, housings, control enclosures, and ventilation hardware. Section 232 tariffs remain a major cost variable for those inputs, with rates as high as 50% for many steel and aluminum products and lower rates for certain derivative or qualifying categories.

The Department of Commerce has created relief paths for some products and manufacturers, but Supply Chain Dive reported that the qualifying process creates a significant compliance burden. For smaller heater manufacturers and the sauna companies that buy from them, the paperwork required to qualify for relief can be material on its own.

A pair of Trump administration proclamations issued in April and June 2026 further adjusted Section 232 coverage, raising rates on some categories, creating lower rates for others, broadening the list of covered goods, and tightening enforcement. The direction is clear enough for sauna suppliers: metal-intensive manufactured goods require closer tariff modeling than they did a year ago.

Freight Costs Are the Third Hit

Even if a sauna manufacturer managed to lock in favorable wood and metal pricing, the cost of moving the finished product would still be under pressure. US truckload spot and contract rates climbed through May and June 2026, and freight trackers have pointed to tighter transportation capacity after a long post-pandemic reset.

That matters more for saunas than it does for many consumer categories. Sauna cabins are heavy, bulky, difficult to stack, and often shipped as low-density freight. A finished four-person barrel sauna can weigh more than 1,500 pounds and occupy a full pallet's worth of deck space. When carrier capacity tightens, these shipments have less room to hide.

The fuel-risk backdrop is not helping. The Strait of Hormuz crisis that began in late February disrupted traffic around a waterway that normally carries roughly one-fifth of global petroleum liquids, pushing shippers and insurers to price in more geopolitical risk. Sauna companies do not need to import through Hormuz to feel the effect. Diesel, insurance, and routing risk move through the freight market broadly.

Who Absorbs the Cost?

The question facing the US sauna industry in the second half of 2026 is not whether costs are rising. They are. The question is who pays.

Manufacturers can raise retail prices, but the sauna market is not the housing market: there is no structural shortage of saunas forcing buyers to accept whatever is offered. Price-sensitive residential buyers have alternatives, including used saunas, DIY kits, and simply waiting. Commercial operators with fixed project budgets may delay installations or negotiate harder with suppliers.

Some manufacturers have hedged by investing in domestic production. Lunawood's Georgia mill, which produces thermally modified timber in the United States rather than importing it from Finland, is the most visible example of a supply chain built partly to insulate against exactly this kind of tariff and freight environment. Almost Heaven Saunas, Leisurecraft, and other North American manufacturers source and build domestically, but they still buy Canadian cedar and imported components.

European manufacturers that ship finished goods to the US face the sharpest margin compression: tariffs on the product, tariffs on the materials inside it, and elevated freight costs to deliver it.

Why It Matters

The US sauna industry has not recently faced simultaneous cost pressure on wood, metal, and freight at this scale. Canadian lumber tariffs above 35%, Section 232 metal duties, and a tighter transportation market are converging at the same moment, with no quick resolution on any front. Manufacturers that locked in material pricing earlier this year are in better shape. Those buying on the spot market are absorbing cost increases on every input. The companies best positioned are those with domestic production capacity, diversified material sourcing, and enough pricing power to pass costs through without losing volume. That is a short list.

The Bottom Line

Lumber, steel, and freight costs are rising on independent timelines driven by different policy decisions, and the US sauna industry sits at the intersection of all three. The tariff picture on Canadian softwood is unlikely to improve before the August rate revisions at the earliest, and the USMCA non-renewal suggests the broader trade environment will remain uncertain well into 2027. Sauna manufacturers and importers should be planning for a sustained period of elevated input costs, not a temporary spike.