In a positive development that will provide forward momentum for housing and help address the nation's growing affordability crisis, the U.S.-Mexico-Canada Agreement (USMCA) went into effect today. NAHB lobbied for this trade pact and President Trump signed the USMCA on Jan. 29.
"We commend President Trump and Congress for working so hard to make this trade pact a reality," said NAHB Chairman Chuck Fowke. "With the USMCA going into effect today, this will provide forward momentum for the housing market and help to ease the nation's housing affordability crisis. Many of the products that go into American homes come from Mexico and Canada. By adding new American jobs and including key provisions to lower the costs of materials needed build and repair homes, the USMCA will provide a much-needed boost to the U.S. economy and represents a win for American workers and a win for housing affordability."
The U.S. residential construction and remodeling industries rely on tens of billions of dollars in building materials sourced from Mexico and Canada annually because America cannot produce enough steel, aluminum and other materials and equipment to meet the needs of the domestic housing industry. The price volatility of these imported materials and equipment are needlessly driving up housing costs and exacerbating the nation's housing affordability woes.
The USMCA is clearly a major improvement over the outdated 25-year-old NAFTA. By modernizing and strengthening free trade with our largest trading partners, the U.S. International Trade Commission predicts that the USMCA will create more than 175,000 new jobs, add about $70 billion to the economy and boost wages for American workers.