These charts explain how Trump’s tariffs on China — plus threatened tariffs to Canada and Mexico — will increase building costs
High interest rates and increasing construction costs had already put a strain on efforts to increase the Bay Area’s inadequate housing supply. Now, as President Donald Trump places sweeping tariffs on imports from China, Canada and Mexico, building costs and home prices are expected to increase even further.
Trump’s changing timeline for introducing new tariffs has made it difficult for homebuilders to anticipate what duties will actually go into effect, and when. Here are the tariffs the president has announced so far:
— Mexico and Canada: On Feb. 1, Trump announced tariffs of 25% on these two major U.S. trading partners that would go into effect in March. Just two days later, he paused the tariffs for 30 days after Mexico and Canada pledged to curb drug flows across their borders. The tariffs went into effect March 4.
— China: On Feb. 1, Trump announced a 10% tariff applied to Chinese imports, effective on Feb. 4. China will be charged an additional 10% tariff beginning on March 4, bringing the total duty to 20%.
— Steel: On Feb. 10, Trump ordered a 25% tariff on steel and aluminum imports from all countries set to take effect March 12.
— Lumber: On Feb. 19, Trump also floated the idea of a 25% tariff on international forest and lumber products to take effect around April 2. This tariff hasn’t been officially announced. (Canada, which is the largest foreign supplier of softwood lumber to the US, is already under tariffs totaling 14.5%, as of August 2024. Additional tariffs would increase the total duty to 39.5%.)