This post was updated May 10
In a move that will harm housing affordability, the Trump administration has increased tariffs on $200 billion worth of Chinese imports
— including $10 billion of goods used by the home building industry — from 10% to 25% effective at 12:01 a.m. May 10.
The president said he is taking this action in response to China retreating from commitments it made in earlier negotiations.
Even as the higher tariffs go into effect, a Chinese trade delegation remains in Washington seeking to resolve the trade dispute. Officials still have time to find a last-minute resolution because the higher tariffs apply to goods that leave China on or after May 10 – not shipments already in transit and approaching American ports.
Last year, Trump imposed a 10% tariff on these goods
, which represents a $1 billion tax increase on residential construction. The tariff jump to 25% is equivalent to a $2.5 billion tax on housing.
NAHB is monitoring the situation closely and continues to urge the administration to resolve this trade 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