Builders Stockpile Lumber, Swap Out Materials to Work Around Tariffs

By Rebecca Picciotto
The Wall Street Journal
March 11, 2025
Category: Business & Politics
Region: United States

When President Trump threatened new tariffs on Mexico, Canada and China at the beginning of February, Steve Martinez flew into action. The Idaho-based general contractor spent hundreds of thousands of dollars on materials like lumber, windows, cabinetry and steel to stockpile them before the tariffs hit. …Since his lenders wouldn’t finance these purchases, he is paying out of pocket and using cash. Then after the president abruptly walked them back, Martinez was left with an upended business plan, less cash and feeling confused about what to do next. “I can’t keep ping ponging back and forth,” Martinez said. …Builders have been doing what they can to insulate themselves from higher import costs, from stockpiling materials and appliances to shrinking the size of the homes they will build. But if tariffs take effect long term, they will only be able to absorb so much cost. [to access the full story a WSJ subscription is required]

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