The announced implementation of a 10 percent tariff on more than $200 billion in Chinese imports is expected to significantly impact the U.S. construction industry.
A wide range of construction materials and supplies from China, including everything from vinyl floor coverings to trimmed granite and various depths of plywood sheets, will cost U.S. builders more to purchase as a result of the Trump Administration’s tariff action.
According to a study just released by the National Association of Home Builders, over “10 percent of the value of these goods is made up of items commonly used in residential construction.”
The NAHB concludes that the tariff is the equivalent of a multi-billion dollar tax increase on the industry.
In a statement, Randy Noel, NAHB chairman, said the tariffs will increase costs for “millions of American consumers and businesses that rely on these products, including home builders.”
Noel added that already existing increased tariffs on Canadian lumber are additionally “increasing the cost of building materials and exacerbating the housing affordability crisis.”
President Trump earlier said that he was imposing the tariffs in order to put a stop to what he called the “unfair transfers of American technology and intellectual property to China.”
It is not certain what will happen next in the tariff stand-off between the two countries. China, in response, has imposed tariffs on some $60 billion in U.S. goods and has also cancelled further trade talks with the U.S.
By Garry Boulard
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