Builders say that the Trump tariff will add between $ 7500 to $ 10,000 to the cost of building a house. The result? More or smaller homes


Shopping for a new house? Are you ready to renew your kitchen or install a new surface? You will pay more to do this.

Trump administration tariff for imported goods from Canada, Mexico and China –Some are already in place, and others are scheduled to enter within a few weeksThey already exceed the cost of building materials used in new residential construction projects and reshaping homes.

The definitions are expected to raise the costs that are entering into the construction of one family home in the United States by $ 7500 to $ 10,000, according to the National Association for Home Builders. These costs are usually transferred to the housing buyers in the form of higher prices, which may harm the demand while the housing market in the United States remains in a state, and many builders must provide costly incentives for buyers to increase sales.

We buy homes in San Francisco, which buys the granted homes, then usually renew and sell, which increases the prices on their properties that were renewed between 7 % and 12 %. This is even after saving $ 52,000 in costs by storing Canadian wood by 62 % more than usual.

“The uncertainty about the duration of which these definitions will continue is the most challenging aspect of our planning,” said CEO Mamata Seni.

A bad timing for builders

The timing of customs tariffs can not be worse for homes and home reshaping, because this is usually the most crowded year in home sales. The possibility of a commercial war caused the stock market cavity and raised concerns about the economy, which may lead to many home buyers to stay on the margin.

“High costs due to customs tariffs on imports will leave builders with few options,” said Daniel Hill, the chief economist in RealTor.com. “They can choose to pass higher costs for consumers, which means high home prices, or try to use fewer these materials, which means smaller homes.”

The prices of building materials, including wood, have increased, although the White House has delayed definitions on some products. Wood futures jumped to $ 658.71 per thousand feet on March 4, reaching its highest level in more than two years.

The increase is already amplifying the costs of construction projects.

Dana Shenber, a partner in the JC Ryan building supplier in Farmingdale, New York, Wooden doors and tire sources for a residential complex in NASO from a company in Canada, which costs less American equivalent.

Half of the job has already been provided. But as soon as the tariff enters into effect, it will be applied to the remaining $ 75,000, adding $ 19,000 to the total cost. Chenber said that once JC RYAN apps, this means that the customer will be debated with $ 30,000 more than the planned in the first place.

Definitions are also expected to grant American manufacturers tariffs to raise prices on steel components.

“These prices will never decrease,” Schneber said. “All that will happen, these things will be sticky and we hope to be good enough as a small company, so we can absorb some of it. We can definitely absorb all of this, so I don’t know. It will be two interesting months.”

Avoiding drivers using an alternative to imported building materials is not always an option.

Bar Diego, the owner of Better Place Design & Build, a contracting company in San Diego specialized in building accessible housing units, or Adus, said Canada is still the best wooden source.

By sticking to imported woods, Alzheim had to raise its prices by about 15 % compared to last year. It also has 8 % less functional -lowering functions compared to last year.

“I am not about to get out of work, but she looks forward to being a slow and costly year for us,” he said.

Rollercoasster tariffs

On March 6, the Trump administration announced a one -month delay on a 25 % tariff on some imports from Mexico and Canada, including soft wood. The 20 % definitions on imports of China are already valid. 25 % tariffs were on steel and aluminum imports – 50 % on those in Canada – on March 12.

The definitions related to Mexican and Canadian goods will be raised to enter into force next month the cost of imported building materials at more than 3 billion dollars, according to NAHB. These price increases will be a 14.5 % tariff on Canadian wood that the United States has previously imposed, which increased the customs tariffs on Canadian wood to 39.5 %.

On Air Force One, President Donald Trump said he was pushing forward with his plans for definitions on April 2, despite the recent disturbance in the stock marketNervousness on economic impact.

“April 2 is the day of liberation for our country,” he said. ))

Building materials costs generally increase 34 % since December 2020, according to NAHB.

Benters depend on raw materials, devices and many other components produced abroad. About 7.3 % of all products used to build a single family building are imported. Among these, nearly a quarter comes from Canada and Mexico, according to Nahb.

Both countries also represent 70 % of the main main building materials imports: wood and gypsum. Canadian wood is used in everything from the frame to tanks and furniture. Mexican gypsum is used to make dry walls.

Beyond raw materials, refrigerators, washing machines, air conditioners and a group of other home components are manufactured in Mexico and China, which is also a major source of steel and aluminum.

Dent Johnson, President of True Value hardware, who runs more than 4000 stores independently, said the definitions mean that shoppers are high to improve homes.

“The fact is that many products on your local hardware store will be affected in the end,” said in an e -mail statement to Associated Press.

Chopping effect

Confusion can be about the timing and scope of definitions, and its impact on the economy, a chilling effect on the new home market from high prices.

“If consumers are unable to plan, if the builders are not able to plan, it is very difficult to know how to pricing the product because you do not know the price you need to move,” said Karl Richardd, a BTIG home building analyst. “If people are concerned about their jobs, or worried about the future, it is very difficult to make a decision to buy a new house, whatever the price.”

Robert Dietz, chief economist in NAHB, said the uncertainty resulting from the tariff policy of the Trump administration will probably increase fluctuations in home sales and build new homes this year.

However, since it may take several months until a house is built, the largest impact of the costs of building materials will happen “on the road”.

The tariff that the effects on consumers are already clear in Slutsky Lumber in Illinville, New York

“There are not many people preparing to separate the spring as they are usually,” said co -owner Jonathan Valon. “People seem to be reduced by spending.”

Falcon also is concerned that smaller companies like his will face a difficult time to absorb the effect of definitions.

He said: “This is similar to something else that will be difficult for the small wood arenas to deal with it from the big players and as soon as it continues to lead companies like us not to do so.”

This story was originally shown on Fortune.com

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