Trump’s 25% Tariffs on Steel and Aluminum Will Drive Up Housing Costs

Material Costs
Published

In a move widely expected to raise residential construction costs, the White House has announced that 25% tariffs on all imported steel and aluminum products will take effect in March.

“Through an executive order on his first day in office, President Trump made it a top priority to reduce housing costs and increase housing supply to ease the nation’s housing affordability crisis,” said NAHB Chairman Carl Harris. “The administration’s move to impose 25% tariffs on all steel and aluminum products imports into the U.S. runs totally counter to this goal by raising home building costs, deterring new development and frustrating efforts to rebuild in the wake of natural disasters. Ultimately, consumers will pay for these tariffs in the form of higher home prices.”

After the president signed two executive orders to impose the tariffs, the White House issued a fact sheet stating it is acting to “protect America’s critical steel and aluminum industries, which have been harmed by unfair trade practices and global excess capacity.”

The new tariffs on steel and aluminum products are projected to raise the cost of imported steel and aluminum products by several billion dollars, adding layered costs that could substantially impact builders’ ability to deliver new single-family and multifamily projects.

This action on tariffs comes just one week after President Trump announced a one-month pause on other tariffs for Canadian and Mexican goods.

NAHB continues to urge the administration to carefully consider the potential effects of placing additional tariffs on building materials, which could price even more families out of the American dream of homeownership.

“We will continue to work with the administration to remove regulatory and other barriers that raise housing costs and hinder the production of new homes and apartments,” said Harris.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Workforce Development

Oct 10, 2025

HBI Report Reveals Economic Impact of Labor Shortages on Housing Production

The 2025 Fall Labor Market Report reveals the true cost of too few workers in the residential construction industry, and provides insights on generational and demographic shifts in the workforce.

Safety

Oct 10, 2025

Fighting the Stigma of Mental Health in Construction

Friday, Oct. 10, is World Mental Health Day, an annual observance from the World Health Organization to raise awareness of mental health issues around the world and to mobilize efforts in support of mental health.

View all

Latest Economic News

Economics

Oct 10, 2025

Vinyl Surpasses Stucco as Most Used Principal Exterior Wall Material

In 2024, vinyl siding was the most used principal exterior wall material for homes started. It holds just over a quarter share of homes, slightly surpassing stucco for the first time since 2018.

Economics

Oct 09, 2025

Remodeling Market Sentiment Improves in Third Quarter

In the third quarter of 2025, the NAHB/Westlake Royal Remodeling Market Index (RMI) posted a reading of 60, up one point compared to the previous quarter. With the reading of 60, the RMI remains solidly in positive territory above 50, but lower than it had been at any time from 2021 through 2024.

Economics

Oct 08, 2025

Refinancing Activity Surges in September

Refinancing activity surged in September, marking the largest monthly increase since the COVID-era of ultra-low interest rates. This increase followed mortgage rates dropping below 6.5% for the first time since October 2024 in anticipation of rate cuts that ultimately materialized. ­­