The National Association of Home Builders (NAHB) chairman and a custom home builder issued a statement regarding the across-the-board tariff imposed by President Trump on Canadian and Mexican goods.

 
"On President Trump's first day in office, he issued an executive order directing departments and agencies to deliver emergency price relief by pursuing actions to lower the cost of housing and increase housing supply. This move to raise tariffs by 25% on Canadian and Mexican goods will have the opposite effect. More than 70% of the imports of two essential materials that home builders rely on - softwood lumber and gypsum (used for drywall) - come from Canada and Mexico, respectively.

"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. NAHB urges the administration to reconsider this action on tariffs and we will continue to work with policymakers to eliminate barriers that make housing more costly and prevent builders from boosting housing production."

President Trump's tariffs include an exception on Canadian energy products which face a 10% tariff. These moves are likely to lead to an uptick in construction materials which will further destruct affordability. NAHB is working to encourage the administration to consider a holistic trade policy.

President Trump and the leaders of Mexico and Canada struck last-minute deals on Monday to postpone tariffs for one month.