Heads up, home DIYers and future homeowners! 🏡 The latest U.S. tariffs on imported lumber, furniture and kitchen cabinets jumped from 10% to up to 50%, but instead of helping Americans, they're driving costs higher and shaking up the housing scene.
Why it matters: Building or renovating your place in Jakarta, Manila or Bengaluru? Even if you're not in the U.S., this ripple effect can mean pricier materials and slower project timelines worldwide.
Key takeaways:
- Tariff hike: Import duties shot up to 50%, adding extra taxes on wood and furnishings.
- Rising bills: Construction and renovation costs get a boost, thanks to pricier inputs.
- Housing slowdown: Higher costs could mean fewer new homes and tougher markets.
Industry voices are raising red flags. Buddy Hughes from the National Association of Home Builders warns these extra charges create headwinds for an already challenged housing market by bumping up mortgage and renovation bills. 🏦💸
Even manufacturers feel the pinch. Naturepedic's Arin Schultz says his organic mattress and furniture brand is upping prices to cover the higher import duties on materials from Sri Lanka, Vietnam and Pakistan – while still absorbing some of the costs to avoid a total pass-through to customers.
Redfin's chief economist Daryl Fairweather adds that fewer affordable builds will hit homebuyers hard. And Anirban Basu from the Associated Builders and Contractors points out that switching production to U.S. soil isn't easy when labor costs are higher and factories take time to scale up.
Let's not forget Canada, a top lumber supplier. The 10% tariff on softwood lumber means prices have spiked over 45%, potentially adding around $2,200 to the cost of an average new home, according to Capital Economics.
Ikea also noted that import levies are making business more difficult – a sign that even global giants feel the squeeze.
Bottom line: Aiming to protect domestic producers, the tariff hikes may end up slowing homebuilding, inflating renovation budgets and piling pressure on buyers. If you're planning a DIY upgrade or dreaming of your first home, you'll want to keep an eye on these trends. 🔍✨
Reference(s):
U.S. tariff hike on lumber and furniture backfires, provoking concerns
cgtn.com
