The National Association of Home Builders (NAHB) commended President Donald Trump for announcing on Monday that he would delay tariffs on products from Canada and Mexico for one month as both countries had agreed to strengthen their borders with the United States.
In the meantime, the U.S. will continue to negotiate with the nation’s two largest trading partners for a resolution to trade issues.
The association had been working to try and convince the Trump administration to not implement tariffs on Canada and Mexico goods because it would increase the cost of housing and hurt the construction industry.
Carl Harris, chairman of the NAHB, wrote a letter to President Trump on Jan. 31 explaining that while the president had acknowledged the need to lower the cost of housing, tariffs would have the opposite effect by increasing the cost of housing materials and slowing down the domestic residential construction industry.
“More than 70% of the imports of two essential materials that homebuilders rely on, softwood lumber and gypsum (used in drywall), come from Canada and Mexico, respectively,” Harris was quoted in a statement released on Saturday. “Tariffs on lumber and other building materials increase the cost of construction and discourage new development, and consumers end up paying for the tariffs in the form of higher home prices.”
On Monday, Harris commended the president on reaching agreements with Canada and Mexico and avoiding additional strains on a housing market already facing affordability challenges.
“Stability and certainty are essential for American business, consumers, and the strength of our economy,” Harris said in a statement. “We urge all parties to remain committed to productive dialogue to prevent new tariffs on construction materials critical to housing our nation.”