Page 26 - BB_Nov_2018

Chinese Tariffs Act as a $1 Billion Tax Hike

on Housing, Could Jump to $2.5 Billion

resident Trump’s decision on September 17, 2018 lumber tariffs have already added thousands of dollars to
to escalate the trade conflict with China could the price of a typical single-family home.
P wind up imposing a $2.5 billion tax increase on “With America facing a housing affordability crisis, it
residential construction at time when builders are is counterproductive to enact policies that will needlessly
already grappling with higher housing costs. drive up the cost of housing. We respectfully urge the
Trump announced he is moving immediately to impose administration to change course and work to resolve these
10% tariffs on an additional $200 billion worth of Chinese trade disputes in a manner that won’t harm American
imports, including $10 billion of goods used by the home businesses and consumers.”
building industry. This 10% levy represents a $1 billion tax NAHB has been leading the charge to urge the Trump
increase on residential construction. Making matters even administration to resume trade talks with Canada. It is
worse, the tax hike will rise to $2.5 billion on Jan. 1 when imperative to find a long-term solution to this trade dispute
the president said the tariff rate will jump to 25% if the two that will ensure American home builders and consumers
nations have not resolved their differences by year end. have access to a reliable supply of softwood lumber at
If China retaliates, Trump has vowed to place tariffs reasonable prices.
on an additional $267 billion worth of imports — a move At NAHB’s urging, 171 House members sent a letter to the
NAHB has strongly opposed. administration in June urging the United States to re-start
Responding to this action, NAHB Chairman Randy softwood trade negotiations with Canada.
Noel issued the following statement noting the effects And in another effort spearheaded by NAHB, 12
this will have on the housing market and urging the Democratic and Republican senators sent a joint letter
White House to change course: to Commerce Secretary Wilbur Ross and U.S. Trade
“President Trump’s decision to impose 10% tariffs Representative Robert Lighthizer last week urging the
on $200 billion worth of Chinese imports, including $10 administration to resume lumber trade talks and find
billion of goods used by the residential construction an equitable solution that will satisfy all sides.
sector, could have major ramifications for the housing NAHB continues to work on all fronts to find solutions
industry. With housing costs on the rise, this action that will ensure a lasting and stable supply of lumber
translates into a tax increase on housing that will rise imports into the United States at a competitive price.
even more significantly on Jan. 1 when the tariff rate View NAHB’s analysis on how the Chinese tariffs
jumps to 25 percent. will impact the housing sector. For more information,
“Further, this tax increase is coming on top of the current contact David Logan at 800-368-5242 x8448 or Alex
20% tariffs on softwood lumber imports from Canada. The Strong at x8279.
NAHB SEPTEMBER 2018
26 NOVEMBER 2018 | GREATER SAN ANTONIO BUILDERS ASSOCIATION