Housing Takes a Hit on Higher China Tariffs

Housing Affordability
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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 at x8279.  

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