How Will Trump's Tariffs Affect Homebuyers? A Closer Look at Rising Costs

If you're in the market for a new home, you might want to brace yourself—tariffs on steel, aluminum, and lumber could make new construction more expensive. Recent tariff announcements by former President Donald Trump, including a 25% tariff on all steel and aluminum imports and a 40% total tariff on softwood lumber from Canada, could drive up building costs.

What Are Tariffs and Why Do They Matter?

Tariffs are taxes on imported goods, and when homebuilders have to pay more for materials, those costs usually get passed on to buyers. The new tariffs could add several thousand dollars to the price of new homes, making homeownership even more challenging for many.

Key Areas Affected by Tariffs

🏡 Lumber & Drywall

• 30% of U.S. lumber comes from Canada, where tariffs will now total nearly 40%
• Gypsum (used in drywall, plaster, and cement) is also imported from Canada, Mexico, and China, adding to construction costs

🏗 Steel & Aluminum

• Many home construction materials come from China, Canada, and Mexico, where new tariffs could increase costs by $4 billion
• Builders may struggle to switch suppliers quickly, meaning higher costs for homebuyers

🔧 Appliances & Home Systems

• Imported HVAC systems, plumbing, and electrical materials could see price increases
• Home appliances, especially those from China, will also be affected

How Much More Will a Home Cost?

Experts estimate that tariffs could add $3,000 to $4,000 to the average cost of a new home. While that may seem manageable, the real concern is how tariffs compound affordability issues—especially as middle-class families already struggle with rising costs.

What This Means for Homebuyers

• New home prices may rise due to higher material costs
• Fewer homes may be built, worsening the housing supply shortage
• Delays in construction could become more common as builders navigate price fluctuations

While tariffs aim to boost American manufacturing in the long run, the short-term effect could mean higher home prices and affordability challenges for buyers. If you're considering purchasing a home, staying informed about these shifts can help you plan ahead.

💬 Thinking about buying a home in this shifting market? Let's chat about your options!

📖 Read the full article here: How Will Trump's Tariffs Affect Homebuyers?