Residential Real Estate News
New Tariffs on Canada, Mexico to Impact U.S. Homebuilder Input Costs
This week the U.S. imposed 25% tariffs on its North American partners after a 30-day delay, citing insufficient action against drug cartels. Canada and Mexico immediately announced retaliatory tariffs. Additionally, a 10% tariff on Chinese goods doubled last month's rate, prompting China to expand its own countermeasures.
U.S. homebuilders fear rising costs, with CoreLogic projecting a 10% increase in building materials and up to 20% for household fixtures. The National Association of Home Builders warned the administration of severe industry impacts, as Canada and Mexico supply critical materials.
Signs of strain are emerging: home starts fell in January, and builder confidence dipped in February. NAHB's Robert Dietz attributes the slowdown to policy uncertainty, predicting that while tax cuts could boost growth, tariffs and deficits may slow momentum.
Trump has pledged to boost U.S. timber production, but experts say it could take three years. In the meantime, tariffs could add $7,500 to $10,000 to new home costs.
