Blog posted date Feb 6, 2025
By Don Almeida- Mortgage Expert and President of Happy Home Mortgage
The National Association of Home Builders (NAHB) has expressed relief following President Donald Trump’s decision to postpone the implementation of proposed tariffs on imports from Canada and Mexico. This delay comes as both neighboring countries have agreed to enhance border security measures and engage in further negotiations with the United States.
Previously, the NAHB had voiced concerns that imposing these tariffs would escalate housing costs and adversely affect the construction sector. In a letter dated January 31, NAHB Chairman Carl Harris highlighted that over 70% of essential building materials, such as softwood lumber and gypsum used in drywall, are sourced from Canada and Mexico. He emphasized that increased tariffs on these materials would raise construction expenses, deter new development, and ultimately lead to higher home prices for consumers.
Following the announcement of the tariff delay, Harris commended the administration’s decision, stating, “Stability and certainty are essential for American businesses, consumers, and the strength of our economy.” He urged all involved parties to maintain constructive dialogue to prevent the imposition of new tariffs on critical construction materials.
The NAHB’s concerns are shared by other industry groups. The National Association of Manufacturers warned that such tariffs could disrupt supply chains and increase costs for U.S. manufacturers. Similarly, the National Retail Federation cautioned that imposing steep tariffs on key trading partners might lead to higher consumer prices and urged continued negotiations to find amicable solutions.
As discussions progress, the NAHB remains hopeful that a resolution can be achieved to avoid further strain on the housing market, which is already grappling with affordability challenges.
Sources:
- National Association of Home Builders. “NAHB Issues Statement on President Trump Delaying Implementation of Tariffs on Goods from Canada and Mexico.” February 3, 2025.
- Fox Business. “Trump tariffs prompt warnings from trade groups.” February 4, 2025.
