The US is now collecting tariffs on imported timber, lumber, kitchen cabinets, bathroom vanities and upholstered furniture, duties that threaten to raise the cost of renovations and deter new home purchases. …Trump described his wood and furniture tariffs as helping to “strengthen supply chains… and increase domestic capacity utilization for wood products.” Yet economists and homebuilders have warned they also could create obstacles to another of Trump’s goals: boosting homebuilding and sales. Trump has for months cajoled Federal Reserve Chair Jerome Powell to lower rates in part to boost home affordability, but critics say the new tariffs could more than offset any gains from lower mortgage and lending costs. Roughly 7% of all goods used in new residential construction come from foreign suppliers, according to the NAHB. Even without new import taxes, the group has said the cost of building materials has risen by 34% since Dec. 2020. [to access the full story a Bloomberg subscription is required]

Related in the Associated Free Press: Trump tariffs on timber, furniture take effect