NAHB opposes latest tariffs from Trump Administration
For opponents of the Trump Administration’s foreign tariff policy, there wasn’t much good news yesterday.
President Trump announced that he is placing a 10% tariff on $200 billion in Chinese imports, which will then rise to 25% by the end of 2018.
The National Association of Home Builders (NAHB), who have been against the Trump Administration’s tariff policy since its inception, wasted little time responding to the latest round of trade war.
"President Trump's decision to impose 10% tariffs on $200 billion worth of Chinese imports, including $10 billion of goods used by the residential construction sector, could have major ramifications for the housing industry. With housing costs on the rise, this action translates into a tax increase on housing that will rise even more significantly on Jan. 1 when the tariff rate jumps to 25 percent,” said Randy Noel, chairman of the NAHB and a custom home builder from LaPlace, La.
"Further, this tax increase is coming on top of the current 20% tariffs on softwood lumber imports from Canada. The lumber tariffs have already added thousands of dollars to the price of a typical single-family home,” Noel added.
The lack of a new softwood lumber agreement has been a major issue for both the NAHB and the National Lumber and Building Material Dealers Association. They argue that the tariffs translate into higher prices for home builders, lumber dealers, and, in the end, consumers, during a period when home prices are already escalating at a rapid pace while leaving potential buyers on the sidelines.
"With America facing a housing affordability crisis, it is counterproductive to enact policies that will needlessly drive up the cost of housing,” Noel said. “We respectfully urge the administration to change course and work to resolve these trade disputes in a manner that won't harm American businesses and consumers."
President Trump announced that he is placing a 10% tariff on $200 billion in Chinese imports, which will then rise to 25% by the end of 2018.
The National Association of Home Builders (NAHB), who have been against the Trump Administration’s tariff policy since its inception, wasted little time responding to the latest round of trade war.
"President Trump's decision to impose 10% tariffs on $200 billion worth of Chinese imports, including $10 billion of goods used by the residential construction sector, could have major ramifications for the housing industry. With housing costs on the rise, this action translates into a tax increase on housing that will rise even more significantly on Jan. 1 when the tariff rate jumps to 25 percent,” said Randy Noel, chairman of the NAHB and a custom home builder from LaPlace, La.
"Further, this tax increase is coming on top of the current 20% tariffs on softwood lumber imports from Canada. The lumber tariffs have already added thousands of dollars to the price of a typical single-family home,” Noel added.
The lack of a new softwood lumber agreement has been a major issue for both the NAHB and the National Lumber and Building Material Dealers Association. They argue that the tariffs translate into higher prices for home builders, lumber dealers, and, in the end, consumers, during a period when home prices are already escalating at a rapid pace while leaving potential buyers on the sidelines.
"With America facing a housing affordability crisis, it is counterproductive to enact policies that will needlessly drive up the cost of housing,” Noel said. “We respectfully urge the administration to change course and work to resolve these trade disputes in a manner that won't harm American businesses and consumers."