President Trump’s across-the-board 25% steel and aluminum tariffs took effect yesterday and Canada responded with new 25% tariffs on an additional $20.6 billion in U.S. imported goods, including steel and aluminum products, computers, sports equipment, and other goods that will begin on March 13th. The European Union responded by announcing two sets of retaliatory tariffs that cover $28 billion in U.S. goods staggered to begin on April 1st and be fully in place by April 13th. Commerce Secretary Howard Lutnick said that the president “wants to make steel and aluminum in America. And let me be clear, nothing is going to stop that until we’ve got a big, strong domestic steel and aluminum capability,” adding that “he’s going to add copper to that mix too.”
President Trump’s current and impending tariffs have builders stockpiling lumber and other materials to avoid potential price increases from tariffs. Builders are also considering using cheaper materials, designing smaller homes, and warning about the potential impact tariffs may have on home prices and their ability to secure financing.