New U.S. tariffs on steel and aluminum imports have sparked concerns that American homebuyers will bear the brunt of rising costs, with industry leaders warning of cascading price hikes in construction and housing markets. The Biden administration’s proposed “reciprocal tariffs” could exacerbate pressures already felt since last summer’s increased duties on Canadian lumber imports.
Industry Backlash Gains Momentum
The National Association of Home Builders (NAHB) argues the tariffs directly contradict efforts to improve housing affordability. Wisconsin builder David Belman estimates new tariffs could add up to $29,000 to single-family home prices, with $14,000 tied to Canadian lumber alone. Canada supplies 80% of lumber to Belman’s operations and remains the U.S.’s largest foreign supplier.
2018 Trade War Echoes
History suggests consumers may foot the bill. In 2018, Trump-era tariffs caused Whirlpool’s costs to spike by $350 million due to steel price hikes. The NAHB now seeks exemptions for building materials to prevent similar fallout, warning that tariffs “will hinder development and reconstruction efforts nationwide.”
The Path Forward
With construction materials deeply tied to global supply chains, analysts say tariff-driven inflation could ripple through appliances, roofing, and infrastructure. As policymakers weigh new trade measures, the housing sector’s calls for targeted exemptions may shape debates on balancing economic strategy with consumer impacts.
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Who pays for tariffs? U.S. homebuyers likely to face higher prices
cgtn.com
