President Trump’s latest round of tariffs aimed at wood, furniture and other household furnishings could drive up the cost of building and owning homes, further weighing on an already weak housing sector.
In a proclamation this week, Mr. Trump said he would impose tariffs on imported wood, furniture, kitchen cabinets and bathroom vanities beginning Oct. 14. The president said in a social media post that they were needed to protect American manufacturing because of “the large scale ‘FLOODING’ of these products” into the United States.
Analysts said the steep levies could aggravate the nationwide housing shortage by slowing the pace of new home construction. The higher costs, as well as hefty tariffs on steel and aluminum that went into effect in June, could also dampen any jolt the housing market might have derived as the Federal Reserve begins to lower interest rates. Mr. Trump has spent months demanding lower rates to help bring down mortgage rates.
“These tariffs are really hard to understand given that the president has said to his supporters, ‘I want to bring down inflation, I want to bring down interest rates, I want to help create an ownership society for you and your other friends and family members,’” said Anirban Basu, chief economist at the Associated Builders and Contractors, a national construction trade association.
In two weeks, the United States will begin charging a 10 percent tariff on imported timber and lumber, as well as a 25 percent tariff on kitchen cabinets, bathroom vanities and upholstered furniture. On Jan. 1, tariffs on cabinets and vanities will increase to 50 percent, and upholstered furniture tariffs will jump to 30 percent.
Much about the policy’s implications remains unclear, including whether businesses will swallow the extra costs. The Trump administration has argued that foreign suppliers pay the tariffs. Yet many American companies have started to pass on the cost of Mr. Trump’s other tariffs to consumers.
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