The Trump administration imposed more tariffs—$200 billion worth—on Chinese goods this week, and homebuilders say this latest round of tariffs could greatly affect the costs of housing construction.
The levies will go into go into effect Sept. 24. The tariffs will start at 10 percent and then increase to 25 percent on Jan. 1
Randy Noel, chairman of the National Association of Home Builders, says that the tariffs on Chinese imports includes $10 billion of goods used by the residential construction sector. About 6,000 goods involved in the latest tariffs are related to the construction of new apartments and homes, the NAHB says.
This “could have major ramifications for the housing industry,” Noel says. “With housing costs on the rise, this action translates into a tax increase on housing that will rise even more significantly on Jan. 1 when the tariff rate jumps to 25 percent.”