Trump’s tariffs on lumber and furniture confuse the US housing market
You entered New customs duties imposed by US President Donald Trump on imported wood, furniture and kitchen cabinets took effect on Tuesday, in a move that the White House said was aimed at strengthening national industries and protecting national security, but in return raised fears of a further rise in construction costs and Housing within the United States.
The package includes imposing a 10% fee on softwood, while fees on upholstered furniture and kitchen cabinets start at 25%, and will rise at the beginning of next January to 30% and 50%, respectively.
The fees on wood products coming from Britain, the European Union, and Japan reach lower limits, ranging between 10 and 15%, after trade agreements that avoided them. More severe penalties.
Widespread criticism from the construction sector
Sector experts believe that the move will increase pressure on the American housing market, which is already suffering from stagnant sales, high interest rates, and limited supply.
National Association of Home Builders President Buddy Hughes warned that the recent decisions will create more challenges by raising construction and renovation costs, which makes Owning homes is more difficult.
He pointed out that imposing fees is under the pretext of national security "It ignores the importance of housing for the living and economic security of citizens"
Canada and Vietnam are the most affected.
Canada is the largest exporter of lumber to the United States, and therefore will be directly affected by the new duties, which raise the total customs duties on Canadian lumber to about 45% from 35%.
The British Columbia Lumber Trade Council described the decision as misleading and unnecessary, warning that… Its repercussions on jobs and the housing market in North America.
Vietnam will also be severely affected, as furniture represents about 10% of its exports to the United States, followed by China and Mexico, which together represent nearly half of American furniture imports.
Possible economic repercussions
According to expert Stephen Brown from "Capital Economics"Imposing a 10% duty on imported lumber could raise the cost of building an average home by about $2,200, at a time when Americans are seeking to confront the housing crisis and rising mortgage rates.
These duties were imposed based on Section 232 of the Trade Expansion Act of 1962, which allows the president to take trade actions to protect national security, and is the same legal tool that Trump previously used to impose duties on Steel, aluminum and automobiles.
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