The Globe and Mail reports in its Tuesday edition that the U.S. National Association of Home Builders is warning about rising costs that it says are squeezing the construction industry after a recent spike in U.S. import taxes on Canadian softwood lumber. The Globe's Brent Jang writes that higher U.S. duties and new tariffs are having serious repercussions as American builders contend with escalating material and labour expenses, NAHB chairman Buddy Hughes cautioned on Monday. The latest NAHB/Wells Fargo Housing Market survey showed that 40 per cent of builders reported reducing prices in December, with an average price drop of 5 per cent. Warnings from the NAHB about inflationary pressures places it at odds with the powerful U.S. Lumber Coalition. The coalition has said that the impact of U.S. import taxes on consumers has been vastly exaggerated, arguing that softwood lumber accounts for a tiny portion of the total costs of a new house, including land value. Natural Resources Minister Tim Hodgson has lined up $2.35-billion in financial supports for Canada's forestry industry since August. That includes $1.2-billion in loan guarantees and $500-million in grants and contributions in a bid to find new buyers overseas.