US tariffs on steel and aluminum imports could mean higher prices for American homebuyers, industry experts warn. The construction and housing sectors are bracing for increased costs that may be passed on to consumers.
Earlier this week, the US administration announced a 25% tariff on steel and aluminum imports, with plans for additional “reciprocal tariffs.” Global investment banks and major industries have voiced concerns that these policies will lead to higher prices for American consumers.
The National Association of Home Builders (NAHB) cautioned that the tariffs could undermine efforts to make housing more affordable. “This policy is likely to raise costs and hinder development and reconstruction,” the NAHB said, emphasizing that consumers may ultimately pay more for housing.
David Belman, a home builder in Wisconsin, estimated that the tariffs could increase the cost of building a typical home by up to $29,000. “This will reduce housing affordability, which is obviously a concern for us as builders,” Belman told The Business Times. He noted that a significant portion of building materials, such as lumber, comes from Canada, which is facing increased duties.
Canadian lumber mills have reportedly told US customers they may increase prices by 25% if the tariffs are implemented. A forestry consultant from British Columbia said, “This has left US companies afraid to buy lumber,” expressing hope for a temporary lift of the policy or alternative distribution channels.
At the World Economic Forum last month, the US leader suggested that the country doesn’t “need their lumber because we have our own forests.” However, experts like Rajan Parajuli, an associate professor at North Carolina State University, argue that domestic timber production may not meet demand in the short term. “I don’t think we’re going to be able to replace Canadian lumber going to the US overnight, or even within a month or a year,” Parajuli said.
