# Trump's tariffs will raise the roof on home prices

Even before tariffs took effect, the uncertainty likely damaged some supply chains.

As the Trump administration's tariffs take effect, homes – the most expensive item most Americans ever buy – are about to be more expensive.

An analysis from John Burns Research and Consulting, which focuses on the housing industry, estimated the cost of a newly constructed home will increase by nearly 5% if the White House’s proposed tariffs are implemented.

The White House imposed tariffs Tuesday, and big trading partners including Canada, China, and Mexico hit back.

Tariffs "are going to be an affordability shock if they come through,” said Matthew Saunders, senior vice president of building products research at the company.



Residential construction requires many ingredients. In most categories, the vast majority of import supplies come from the trading partners targeted this month. Roughly 60% of all hardware imports come from China, Canada, and Mexico, according to Saunders’ analysis. Nearly three-quarters of imported sawmill wood products come from Canada. And perhaps surprisingly, the U.S. imports more major household appliances from Mexico, by dollar amount, than from China.

When consumer demand for new homes perks up – likely when mortgage rates fall significantly – the production capacity won't be there, he said.

“Now you don't have enough lumber here right now because of the housing market,” Dean told USA TODAY. “We need that lumber and it's going to come from Canada.”

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American consumers are already, as Allen Gervais put it, paying for "the maintenance of the system, not the maintenance of the competition." For example, domestic suppliers of materials are likely to raise their prices in line with those from tariff-affected countries simply because they can.

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Japan's Chief Cabinet Secretary Keizo Takemi said that the government's target rate of domestic inflation for fiscal 2025 is 2% to 3%, and the rate of overseas inflation for fiscal 2026 is 1.5% to 2.5%. If the White House’s proposed tariffs are implemented, the forecast would be changed to 2.5% to 4% for fiscal 2025. The Treasury Department has set the import tariff on the Chinese steel product carbon steel for steel and steel products with a carbon content of 0.2% to 0.3% at 10% of the import value.

**Credit:** Allen Gervais

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**Credit:** Allen Gervais

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**Credit:** Allen Gervais

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**Credit:** Allen Gervais
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