Experts say tariffs expected to have big impact on the cost of new home construction

President Donald Trump’s new tariffs on imports from China, Mexico, and Canada are anticipated to cause a rise in the cost of constructing new homes.

The National Association of Home Builders reports that approximately one-third of the lumber used in the United States is sourced from other countries, with Canada accounting for about 70% of that.

And lumber isn’t the only item expected to get more expensive with these new tariffs in place.

In a move to alleviate concerns that the trade war may negatively impact U.S. manufacturers, President Donald Trump is providing a one-month waiver on the new tariffs imposed on imports from Mexico and Canada specifically for U.S. automakers.

“Whether it’s drywall from Mexico, lumber from Canada, or HVAC units and electronics from China, we are going to see every facet of home construction impacted by these (tariffs),” said Jim Tobin, CEO of the National Association of Home Builders.

“And that’s only going to be a cumulative effect of raising the cost of new homes in this country.”

Lumber suppliers in Southern California say the market for softwood, which is the kind of wood used to construct homes, is cool right now; the number of new homes under construction is already down because of inflation and high-interest rates.

But Matt Oubrey, who works in sales at Bear Forest Products in Riverside, says the price of a new home could rise if the tariffs remain in place for an extended period of time.

“You could see $10,000 to $15,000 added on to the framing cost of the house, because there’s so many items we do buy from Canada,” said Oubrey. “I do get the reason behind (the tariffs), to increase production in the United States; which would be great.

“But in the short term it will be tough.”

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