President Trump’s proposed 10% tariffs on $200 billion worth of Chinese imports — including nearly 500 products used in residential construction — could have major ramifications for the housing industry.
Of the planned $200 billion in tariffs, NAHB economists estimate that $10 billion of goods used by the home building community would be subject to the 10% levy.
Put another way, if the tariffs take effect, this would represent a $1 billion tax increase on residential construction.
Keep in mind that this tax increase would come on top of the current 20% tariffs on softwood lumber imports from Canada. Since the beginning of last year, lumber prices are up more than 40% due in large part to the tariffs, and this higher cost has added several thousand dollars to the price of a typical single-family home.