Logan Mohtashami, HousingWire Lead Analyst, suggests that tariffs implemented by the Trump administration are not likely to be a long-term strategy but rather a negotiating tactic with other countries. While there could be temporary tariffs to strengthen negotiations, the broader impacts, particularly on the U.S. homebuilding sector, have raised significant concerns. The NAHB warns that proposed 25% tariffs on imports from Canada and Mexico could hinder rather than help housing costs by affecting construction material prices, which have already surged since 2021. Additional assessments predict that universal tariffs may lead to increased inflation and financial burdens for U.S. households.
I don't believe we will see universal tariffs in place for the Trump term; this is all about negotiating a deal with other countries.
NAHB has serious concerns that proposed 25% tariffs on Canada and Mexico will have the opposite effect, by slowing down the domestic residential construction industry.
Bringing down the cost of housing will require a coordinated effort to remove obstacles to construction, be they regulatory, labor or supply-chain related.
A forecast from Pantheon Macroeconomics estimated that a 10% universal tariffs would raise inflation by 0.8% percentage points in 2025.
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