By National Association of Home Builders
With President Trump announcing that he plans to impose 25% tariffs on Canadian and Mexican goods coming into the United States, the National Association of Home Builders is urging the president to exempt building materials from the proposed tariffs because of their harmful effect on housing affordability.
Tariffs on lumber and other building materials increase the cost of construction and discourage new development, and consumers end up paying for the tariffs in the form of higher home prices.
In a letter to the president, NAHB noted that on his first day in office Trump issued an executive order that seeks to increase housing supply and affordability.
“Bringing down the cost of housing will require a coordinated effort to remove obstacles to construction, be they regulatory, labor or supply-chain related,” NAHB’s letter said. “NAHB stands ready to work with you to accomplish these goals. However, we have serious concerns that proposed 25% tariffs on Canada and Mexico will have the opposite effect, by slowing down the domestic residential construction industry.”
NAHB’s letter to President Trump is available here. (Source)