President Trump said yesterday that he would delay a scheduled tariff hike to 25% on $200 billion worth of Chinese imports that was set to go into effect on March 2 in order to give more time to achieve a negotiated settlement with Beijing. This action represents a positive development for home building and housing affordability.
Last year, Trump imposed a 10% tariff on these goods, which represents a $1 billion tax increase on residential construction. This 10% tariff remains in effect while negotiations continue with China. A tariff jump to 25% would be equivalent to a $2.5 billion tax on housing.
Writing on Twitter, Trump said the "U.S. has made substantial progress in our trade talks with China," adding that he plans to host Chinese President Xi Jinping at his Florida estate in Mar-a-Lago to finalize an agreement if additional progress is made on the trade talks.
NAHB has urged the administration to resolve this dispute quickly in a way that won’t hurt American consumers or businesses.
For more information, contact David Logan
at 800-368-5242 x8448 or Alex Strong