The price of wood, construction materials may rise due to customs duties
Big Money Show panelists discuss the fentanyl crisis, and President Donald Trumps tariff plans as China vows to retaliate.
president Donald Trump’s Plans have been made to impose a 25% tariff on goods from Canada and Mexico, warnings from several trade groups say that such movements have resulted in a significant amount of major building materials being sourced from neighboring countries. When you think about it, it will increase the cost of housing.
The president agreed to suspend these tariffs for a month after the two countries offered concessions to secure US borders, but the threat of price surges looms on some industries .
Home builders and materials suppliers have warned that tariffs on goods from Canada, China and Mexico will increase construction costs and exacerbate the home’s affordability crisis. (Photographer: Jordan Vonderhaar/Bloomberg via Getty Images)
After Trump signed the executive order, the National Home Builders Association urged the president to rethink, with NHBA Chairman Carl Harris saying, “Over 70% of the imports of two important materials that home builders rely on – coniferous trees and plaster (used) drywall) – comes from Canada and Mexico, respectively.”
A few days later, the trade group warned that the cost of timber would increase by 40% – warning that tariffs on coniferous wood products would be even higher than 25% From Canada The tariffs are imposed as they are above the effective 14.5 tax rate already in place.
Affordable Crisis of Homes That Breaking Young Adults in America
CFRA analyst Ana Garcia wrote in a memo this week that US logging has been declining in recent years and that if Canada’s tariffs are in place, US logging may not be able to fill the gap.
Major of coniferous wood used in the US is imported from Canada ((Photo by Justin Sullivan/Getty Images)/Getty Images)
“If tariffs are rolled out on March 4, 2025, reducing home openings, exacerbating affordable challenges for buyers and increasing headwinds for home builders, increasing material frameworks will increase. I will,” writes Garcia.
How extreme weather and high home prices will affect the housing market in 2025
Jonathan Payne, president and CEO of the National Lumber and Bills Material Dealers Association, warned Wednesday that he would experience planned tariffs in Canada and Mexico. Housing Market. ”
“The US already has an affordable housing crisis, and as a nation, we are reducing construction costs and regulated rather than policies that block or create new challenges for developing affordable housing. The focus must be on defending measures to eliminate barriers,” he said in a statement. .
Ontario Premier Doug Ford says he hopes that “a calm head will win” in tariff debate over the “Craman Countdown.”
Meanwhile, the construction industry is also concerned that an additional 10% Trump will be present on imports from China this week.
Click here to get your Fox business on the go
NAHB CEO Jim Tobin says despite an 11-hour reprieve on tariffs with a 30-day delay, there is still a lot of uncertainty and warns China, Mexico and Canada .
“Your home doesn’t have any rooms that don’t have anything from any of these three countries: doorknobs, lighting fixtures, lumber framing, friction, etc.” Tobin said. Fox Business.