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💰Trump’s Tariffs Could Add $35k to $45k to Cost of a New Home 🏠 California's construction industry braces for potential higher timber prices, with the threat of a 25% tariff on Canadian lumber sending shockwaves through the housing market. This move, proposed by President Trump, could significantly impact the cost of building materials across the United States. 🔎 Key Highlights: 1️⃣ Rising Costs: With over $3 billion worth of softwood traded from Canada to the U.S., the proposed tariffs are expected to raise the cost of imported materials, affecting everything from structural steel to roofing and flooring. Pete Meichtry, vice president of Ganahl Lumber Co, warns that these increased costs may force consumers and developers to postpone or scale down projects. 2️⃣ Local vs. Imported: While the administration argues that tariffs could level the playing field by promoting local production, industry experts like Chris Fisher urge caution. He advises clients to prepare for potential challenges and consider alternative materials to mitigate the financial impact. 3️⃣ Impact on Housing: With the ongoing recovery from devastating wildfires in Los Angeles, the additional costs from tariffs could hinder rebuilding efforts. Don Dunmoyer, president of the California Building Industry Association, estimates that these tariffs could add between $35,000 and $45,000 to the cost of new home construction, further straining an already challenged market. 🤔 #questionforgroup: How can the construction industry adapt to rising material costs while ensuring affordable housing remains accessible? What strategies can builders employ to navigate these economic challenges? 🔗 To learn more about the North American softwood lumber dispute and the potential impact of Trump’s tariff plan on global timber prices, click here: https://lnkd.in/gdKTG8Eg #timberprices #constructionindustry #housingmarket #tariffs #affordablehousing #california #lumbertrade #economicimpact #buildingmaterials #globaltrade #softwoodlumber #housingcosts #markettrends #constructionchallenges #materialcosts #supplychainissues #industryinsights #homebuilding #timbermarket #economicpolicy

Thank you to GOBankingRates and Keera Bolton for including my opinion on How Trump’s Tariffs Could Impact the Housing Market. “Raising construction costs and tariffs directly lead to higher home prices,” said George Carrillo, CEO of the Hispanic Construction Council (HCC). “For instance, the 2018 tariffs — 25% on steel and 10% on aluminum — caused material costs to jump by 10% to 15%, adding roughly $1 billion to construction expenses in just one year.” Carillo said small construction businesses, which comprise 80% of the industry, could be hit hardest by the tariffs. “With slimmer profit margins, these firms struggle to absorb rising costs,” he explained. “New home construction, already challenged by labor shortages and disrupted supply chains, faces added strain from tariff-induced hikes.” Click below to read the full story. #usa #housing #tariffs #construction

Tariff Threat May Fuel Construction Materials Stockpiling And Spur Industrial Outdoor Storage Use On Nov. 25, Donald Trump said he wants to apply 25% tariffs on goods from Canada and Mexico, two of the U.S.’ largest trading partners for lumber and construction equipment. In anticipation of these promised tariffs under the coming Trump administration, some in the construction industry are stockpiling materials, potentially creating increased demand for industrial outdoor storage (IOS). After a growth spike when the pandemic caused massive demand for storage space, IOS could enjoy refreshed interest as a quick solution for companies trying to get ahead of what could be pricey taxes on necessities for new commercial development. Contractors working on ongoing projects should consider accelerating delivery, even for domestic products, since tariffs could impact the entire supply chain. Those contractors looking at estimation or preconstruction should consider potential cost and lead time impacts when delivering estimates to clients. #industrialcre

These potential tariffs, from a real estate market perspective, could have a consequential impact on both our manufacturing sector’s supply chain as well as hitting developers with increasing costs on imported goods, such as rebar and other construction materials. https://lnkd.in/gvEUKSFU #Tariffs #CommercialRealEstate

Today's Chicago Sun-Times reminds us that tariffs are coming and will immediately affect the cost of both domestic and imported construction materials. This (or six months ago) is a good time to check your existing contracts to see what they say about material cost increases. If you don't see provisions specific to material cost escalation, look carefully at definitions of changes in law and force majeure, and for obligations and required timing for notice and mitigation of cost and time impacts. If you are negotiating a construction contract now, anticipate tariff impacts and include provisions to allocate responsibility for material cost escalations. Article at https://lnkd.in/gAumPVeR

How do you consider tariffs will affect the building materials and cabinet industries next year?

Tariff Threat May Fuel Construction Materials Stockpiling And Spur Industrial Outdoor Storage Use In anticipation of promised tariffs under the coming Donald Trump administration, some in the construction industry are stockpiling materials, creating fresh demand for industrial outdoor storage, or IOS. #darwinpw #corfacinternational #industrialrealestate Read more: https://lnkd.in/epDdHuzQ

Have you thought about how a potential new round of tariffs would impact your industry? Clients at John Burns Research and Consulting have been asking us about impacts for US building products and construction. In a recent NBER paper (link in comments), authors Robert Feenstra and Chang Hong find that tariffs hit consumer costs hard but can give a short-term boost to states with a production edge. The big picture? While 25 states still benefitted from the last wave of tariffs, national welfare losses surged to $103 per US household by 2022. This underscores a crucial insight: tariffs increase costs across the board, particularly hurting sectors like construction and building products that rely heavily on imports. Bottom line: For every win on the production side, tariffs amplify cost pressures on the end market, making housing and construction costlier and less predictable. Expect domestic producers of building materials to gain, but import-reliant builders and consumers to lose. The R&R market depends on competitively priced imported materials like tiles, fixtures, and specialty hardware. Tariffs may help some U.S. manufacturers, but they’ll also create significant cost pressures for builders, ultimately impacting housing affordability. The map below shows those states (in green) that benefitted on net from the last wave of tariffs vs those that lost (in red). Major regional story here as well as implications for costs/pricing. Please share your own thoughts below! #kitchenandbath #construction Matt Saunders, CFA, CBE

Some interesting insights on Tariffs and their impact on our industry specifically

Trump Tariffs Could Disrupt Construction Projects. The commercial construction industry may face significant price hikes on materials, particularly those imported from China, as President-elect Donald Trump pushes for widespread tariffs upon taking office in January. Key construction inputs such as metals, coatings, plumbing components, and HVAC parts could see steep increases, industry experts say. Structural steel sourced from China—a major global producer—is especially at risk. While steel prices have dropped around 10% this year, new tariffs could reverse those trends, raising costs for builders. Electrical components, including gear parts, transformers, and circuit breakers, could also face additional supply chain challenges, particularly in active sectors like data centers and manufacturing. Even domestically produced materials could see price inflation. Tariffs often reduce competition from imports, allowing domestic suppliers to keep prices elevated—a trend observed during the pandemic. Some experts believe these tariffs may be more about negotiation tactics than actual enforcement. However, the uncertainty alone has construction leaders preparing for potential disruptions to budgets and project schedules. For builders, the key question remains: Will proposed tariffs have real teeth, or are they leverage for broader trade deals? #ConstructionIndustry #Tariffs #CommercialBuilding #SupplyChain