The article discusses the implications of Trump's tariffs on U.S. homebuilders, particularly the significant 54% tariff imposed on China, which affects key construction materials. While homebuilder stocks initially dropped due to these tariffs, a drop in mortgage rates offers a glimmer of hope. Notably, bipartisan efforts in Congress seek to reclaim legislative authority over trade policies in response to perceived overreach by the executive branch. These developments indicate a broader struggle over U.S. trade strategy and its direct impact on domestic industries and economies.
"It's possible that governors could ask trade partners to adjust any retaliatory tariffs to inflict less pain on states that oppose Trump's tariffs, which are sweeping in both scope and scale."
"Builder stocks were hammered on Thursday, with LGI Homes down 9%, Toll Brothers down 8%, and Meritage Homes down 6.8%, highlighting the market's recognition of the tariff impact."
"This bill reasserts Congress's role over trade policy to ensure rules-based trade policies are transparent, consistent and benefit all Americans, as trade wars can be devastating."
"One tariff bright spot for the housing industry is that mortgage rates have dropped in response as investors abandon equities in favor of bonds, with the 30-year conforming loan rate down to 6.77%"
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