NAHBNow: A Looming $1 Billion Tax on Housing

NAHBNow: A Looming $1 Billion Tax on Housing
July 27, 2018 Pierce Monahan

President Trump’s proposed 10% tariffs on $200 billion worth of Chinese imports — including nearly 500 products used in residential construction — could have major ramifications for the housing industry. Of the planned $200 billion in tariffs, NAHB economists estimate that $10 billion of goods used by the home building community would be subject to the 10% levy. Put another way, if the tariffs take effect, this would represent a $1 billion tax increase on residential construction.Keep in mind that this tax increase would come on top of the current 20% tariffs on softwood lumber imports from Canada. Since the beginning of last year, lumber prices are up more than 40% due in large part to the tariffs, and this higher cost has added several thousand dollars to the price of a typical single-family home.This is why it is absolutely imperative that the Trump administration resumes talks with Canada to find a long-term solution to this trade dispute that will ensure American home builders and consumers have access to a reliable supply of softwood lumber at reasonable prices.

 

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