New tariffs could raise home prices and sideline potential buyers
Due to high mortgage interest rates, a limited number of available properties, and historically high home prices, the U.S. housing market was already having difficulties.
Now, further pressure is being added by building material tariffs.
The United States imports about 30% of its softwood lumber, mostly from Canada. Gypsum, also referred to as wallboard, is supplied from Mexico. President Donald Trump's 25% tax on goods from the two major trading partners will increase the cost of such commodities. Mexico tariffs are still a possibility even though they were put on hold for a month on Monday.
Carl Harris, the head of the National Association of Home Builders, stated in a press release that over 70% of the imports of two crucial components used by home builders—softwood timber and gypsum—co...