Home builders have already started to feel the effects of US tariff policy, according to NAHB member surveys. This is true even though the Administration enacted a 90-day hiatus, with tariffs on countries other than China… and subsequently granted temporary exemptions for a broad range of electronic products. …Significant uncertainty about the final outcome still remains. The US may revisit trade policy for Canada and Mexico, China-U.S. negotiations are unsettled, and the effects of the 10% tariff on building products from other countries are difficult to predict. …In the meantime, economic uncertainty can adversely affect consumer confidence and make prospective home buyers hesitate. This is one of the reasons the NAHB/Wells Fargo Housing Market Index (HMI) declined in March. The NAHB estimates that the average new single-family home requires $174,155 worth of building materials. Previous NAHB research has shown that 7.3% of materials in residential construction, or $12,713 of materials costs, is imported.

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