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

Sustainability and Green Building

Apr 30, 2025

NAHB Mourns Passing of Member Kim Shanahan

NAHB mourns the passing of Kim Shanahan, who played an integral role in the Sustainability & Green Building Subcommittee and Healthier Homes and Communities Subcommittee.

Awards | Sustainability and Green Building

Apr 30, 2025

Global Innovation Home of the Year Brings Wellness to Production Home Design

ERTH360, a home design and architecture firm based in Ontario, has spent years focused on bringing wellness concepts to production home design. Its design won the Gold award for GIA Global Innovation Home of Year at NAHB’s The Nationals for 2024.

View all

Latest Economic News

Economics

Apr 30, 2025

U.S. Economy Contracted in First Quarter of 2025

The U.S. economy contracted in the first quarter of 2025 for the first time in three years, driven by a sharp surge in pre-tariff imports, softening consumer spending, and a decline in government spending.

Economics

Apr 30, 2025

House Sharing is Not Just for Young Adults

A record-high 6.8 million households shared their housing with unrelated housemates, roommates or boarders in 2023. While college-age and young adults make up the largest subset of house sharers (close to 41%), this type of living arrangement is gaining popularity among older householders fastest, with the 55+ segment accounting for 30% of all house-sharing households in 2023.

Economics

Apr 29, 2025

Jobs Openings Fall as Economy Slows

Consistent with soft sentiment data, the count of job openings for the overall economy and construction fell in March as employers slowed hiring plans amid a broader economic slowdown, per the March Bureau of Labor Statistics Job Openings and Labor Turnover Survey (JOLTS).