Experts say tariffs expected to have big impact on the cost of new home construction
Share and Follow

The cost of building new homes is expected to jump in response to President Donald Trump’s new tariffs put in place on imports from China, Mexico and Canada.

According to the National Association of Home Builders, about one-third of the lumber used in the United States comes from outside the country; of that, about 70% of it comes from Canada.

And lumber isn’t the only item expected to get more expensive with these new tariffs in place.

President Donald Trump is granting a one-month exemption on his stiff new tariffs on imports from Mexico and Canada for U.S. automakers, amid fears that the trade war could harm U.S. manufacturers.

“Whether it’s drywall from Mexico, lumber from Canada, or HVAC units and electronics from China, we are going to see every facet of home construction impacted by these (tariffs),” said Jim Tobin, CEO of the National Association of Home Builders.

“And that’s only going to be a cumulative effect of raising the cost of new homes in this country.”

Lumber suppliers in Southern California say the market for softwood, which is the kind of wood used to construct homes, is cool right now; the number of new homes under construction is already down because of inflation and high-interest rates.

But Matt Oubrey, who works in sales at Bear Forest Products in Riverside, says the price of a new home could rise if the tariffs remain in place for an extended period of time.

“You could see $10,000 to $15,000 added on to the framing cost of the house, because there’s so many items we do buy from Canada,” said Oubrey. “I do get the reason behind (the tariffs), to increase production in the United States; which would be great.

“But in the short term it will be tough.”

Copyright © 2025 KABC Television, LLC. All rights reserved.

Share and Follow
You May Also Like
Fed chair Jerome Powell under investigation by federal prosecutors

Federal Prosecutors Launch Investigation into Fed Chair Jerome Powell

Federal prosecutors have initiated a criminal investigation into Jerome Powell, the influential…
Wild video shows federal agents detaining 2 men at Minnesota gas station as agitators gather

Federal Agents Detain Two Individuals at Minnesota Gas Station Amidst Growing Crowd

In a series of intense videos, federal Border Patrol agents are seen…
Priyanka Chopra clings to Nick Jonas at Golden Globe Awards

Priyanka Chopra and Nick Jonas Share a Heartwarming Moment at the Golden Globe Awards

In the realm of television, the battle for the title of Best…
Deadly avalanche claims 2 snowmobilers in Washington state backcountry, 2 rescued

Tragic Avalanche in Washington Backcountry: Two Snowmobilers Lose Lives, Two Others Rescued

Authorities in Washington state revealed on Saturday that two men tragically lost…
Expert warns of 'extreme violence' in Venezuelan mining as Trump admin eyes mineral reserves

Venezuelan Mining Crisis Escalates: Expert Predicts Extreme Violence Amid U.S. Interest in Mineral Reserves

The Trump administration’s renewed focus on Venezuela’s mineral wealth could pose significant…
Dear Abby: My grandbaby never visits our side of the family

Grandparent Dilemma: Seeking Solutions for Limited Visits from Beloved Grandchild

DEAR ABBY: My son tied the knot with a wonderful woman, “Noelle,”…
Iranian protesters clash with security forces as tear gas fills Tehran streets amid nationwide unrest

Iranian Crown Prince Calls on Trump for Support Amid Escalating Anti-Regime Protests

Exiled Iranian Crown Prince Reza Pahlavi is urging President Donald Trump to…
Ex-con charged in Christmas Day CVS robbery that left clerk fatally stabbed

Ex-Convict Faces Charges in Fatal Christmas Day CVS Stabbing and Robbery

RIVERHEAD, N.Y. — On Christmas Day, 23-year-old Eddy Cine Jr., an aspiring…