President Trump’s tariffs of 25% on Canada and Mexico took effect as the president also confirmed his planned reciprocal tariffs will take effect April 2, 2025. The U.S. also imposed 10% tariffs on imports from China on top of those already in place, bringing them to 20%. The implementation of the tariffs comes despite warnings from Trump’s own National Economic Council that new tariffs will cause more inflation. The International Chamber of Commerce also warned that Trump’s tariffs could cause a crash similar to the Great Depression unless the Administration rethinks its plans.
Separately, the National Association of Home Builders said that President Trump’s tariffs will increase the cost of a home between $7,500 and $10,000 due to increases on imported drywall, lumber, appliances, and finishings. The greatest impact will come from the new 25% tariff on Canadian goods that is in addition to the existing 14.5% tariff on Canadian lumber. Roughly a third of the lumber used in U.S. homebuilding comes from Canada, and home builders say domestic lumber producers are expected to raise their prices to match imports.