Hardware Retailing The Industry's Source for Insights and Information
After multiple tariffs on imports from China, Mexico and Canada were announced then placed on hold in early February, President Donald Trump announced a new round of tariffs on Feb. 10 that would raise steel and aluminum imports to a 25% rate, eliminating previous country exceptions and exemptions.
The new tariffs will go into effect on March 12. The measures restore and expand on Trump’s 2018 Section 232 duties, which set steel tariffs at 25% and taxes on aluminum imports at 10%.
The National Association of Home Builders (NAHB) says the tariffs will raise residential construction costs for consumers.
“Through an executive order on his first day in office, President Trump made it a top priority to reduce housing costs and increase housing supply to ease the nation’s housing affordability crisis,” says Carl Harris, NAHB Chairman. “The administration’s move to impose 25% tariffs on all steel and aluminum products imports into the U.S. runs totally counter to this goal by raising home building costs, deterring new development and frustrating efforts to rebuild in the wake of natural disasters. Ultimately, consumers will pay for these tariffs in the form of higher home prices.”
The National Retail Federation (NRF) also weighed in on the Trump administration’s plan to impose reciprocal tariffs on all trading partners.
“While we support the president’s efforts to reduce trade barriers and imbalances, this scale of undertaking is massive and will be extremely disruptive to our supply chains,” says NRF executive vice president of government relations David French. “It will likely result in higher prices for hardworking American families and will erode household spending power. We encourage the president to seek coordination and collaboration with our trading partners and bring stability to our supply chains and family budgets. The University of Michigan monthly consumer sentiment index continues to decline, suggesting consumers are alarmed about trade war uncertainty.”
Argentina, Australia, Brazil, Canada, Japan, Mexico, South Korea, Ukraine, the United Kingdom and the European Union have all received exemptions, which prevent the tariffs from being effective according to the White House Fact Sheet.
