Senate Bill Would Exclude Building Materials from Tariffs

NAHB worked with Sens. Jacky Rosen (D-Nev.) and Chris Coons (D-Del.) to introduce legislation that would address the housing affordability crisis by creating an exemption process for building materials from tariffs.

The Housing Tariff Exclusion Act would automatically exempt many home building materials from President Trump’s current and future tariffs and allow importers to apply for tariff exemptions on home building materials that aren’t automatically exempted.

“Roughly 60% of builders have already seen cost increases due to tariffs, which means higher housing costs for American home buyers and renters,” said NAHB Chairman Bill Owens. “This bill is an important step forward to create more certainty for American businesses and to address the nation’s housing affordability challenges.”

With the nation facing a housing shortfall of roughly 1.2 million units, NAHB continues to urge the president to exempt building materials as part of his tariff strategy because they raise construction costs, impede supply chains, and result in market and business uncertainty that make it difficult for builders to price their homes.

The Housing Tariff Exclusion Act contains the following key provisions:

• Requires the Secretary of Commerce to establish a process for U.S. businesses to request an exclusion from tariffs for goods used in home construction.
• Includes a list of products commonly used in home building for which the Secretary must exclude tariffs within 15 days of application.
• Stipulates that for all other products used in home building, the Secretary of Commerce must administer an objective process and exclude tariffs that would increase the cost of home building in the United States.
• Applies to all tariffs except anti-dumping and safeguard tariffs.
• Allows businesses to apply for reimbursement of tariffs paid prior to an exclusion being granted.

Sens. Lisa Blunt Rochester (D-Del.), Tim Kaine (D-Va.), Angela Alsobrooks (D-Md.), Martin Heinrich (D-N.M.) and Andy Kim (D-N.J.) are also cosponsoring the bill.