New U.S. tariffs on imported lumber, furniture, and kitchen cabinets—jumping from 10% to 50%—are sparking backlash as costs soar for American consumers and industries. Critics say the move could worsen the housing crisis and strain global supply chains. 🚨
The Ripple Effect on Housing
National Association of Home Builders chairman Buddy Hughes warned the tariffs add 'headwinds' to an already struggling housing market. With mortgage rates high and inventory low, homebuyers now face even steeper construction costs. 🏗️
Businesses Brace for Impact
Ohio-based Naturepedic, which imports materials from Sri Lanka and Vietnam, is raising prices by 5-10% to offset tariffs. 'We’re eating a good amount of the cost,' said Chief Growth Officer Arin Schultz. Meanwhile, economist Daryl Fairweather predicts fewer new homes will be built, deepening affordability challenges. 📉
Global Backlash and Supply Chain Woes
Canada, a top lumber supplier to the U.S., slammed the tariffs as 'misguided,' warning they’ll hike homebuilding costs by up to $2,200 per house. Swedish giant Ikea also criticized the policy, calling it a hurdle for global businesses. 🌐
While some U.S. manufacturers might benefit, experts like Anirban Basu note labor costs make reshoring production 'slender.' The tariffs now risk becoming a lose-lose for economies on both sides of the border. 🤝💔
