The new U.S. administration's decision to impose a 25% tariff on steel and aluminum imports is causing ripples across the housing market. 📉🏡 But who’s really footing the bill for these tariffs? The answer: American homebuyers.
Experts from global investment banks and major industries warn that these tariffs could lead to higher prices for everyday consumers. In particular, the construction and housing sectors are bracing for impact as building supplies and household appliances heavily rely on international trade.
Remember the trade war in 2018? American appliance giant Whirlpool saw costs jump by a whopping $350 million due to soaring steel prices. Fast forward to today, and the National Association of Home Builders (NAHB) is sounding the alarm. They argue that these tariffs contradict the administration’s goal of making housing more affordable.
According to the NAHB, higher tariffs are likely to increase costs and slow down development and reconstruction efforts. This means that the average American consumer might face steeper housing prices down the line. To combat this, the NAHB is pushing for exemptions on tariffs for construction materials.
David Belman, a home builder from Wisconsin, estimates that these tariffs could add up to $29,000 to the cost of building a typical home. A significant chunk of this increase, around $14,000, comes from tariffs on Canadian lumber. With 80% of his lumber sourced from Canada, the largest foreign supplier to the U.S., the impact is substantial.
The U.S. is already dealing with higher duties on shipments that started last summer, and the situation shows no signs of easing anytime soon. As tariffs continue to evolve, it's clear that American homebuyers will bear the brunt of these economic shifts. 🏠💵
Reference(s):
Who pays for tariffs? U.S. homebuyers likely to face higher prices
cgtn.com
