New tariffs on wood, furniture raise fears of higher housing costs

President Donald Trump’s decision to impose steep new tariffs on imported wood, furniture and home fixtures is drawing criticism from economists, builders and housing experts who warn the move could further strain an already fragile housing market.

New tariffs in these sectors were first announced Sept. 26 by Trump on social media, with further details rolled out earlier this week.

Beginning Oct. 14, the U.S. will levy a 10% tariff on imported timber and lumber — and a 25% tariff on kitchen cabinets, bathroom vanities and upholstered furniture.

On Jan. 1, tariffs on cabinets and vanities will rise to 50%, while upholstered furniture will be taxed at 30%.

Trump said in a proclamation that the duties were needed to protect domestic manufacturers from “the large scale flooding of these products” into the U.S.

Builders express concern

In a New York Times article, analysts cautioned that higher costs could slow construction, worsen the housing shortage and offset any relief from falling mortgage rates.

“These tariffs are really hard to understand given that the president has said to his supporters, ‘I want to bring down inflation, I want to bring down interest rates, I want to help create an ownership society for you and your other friends and family members,’” Anirban Basu, chief economist at the Associated Builders and Contractors, told the Times.

Builders said the new policy will increase the cost of homes and renovations at a time when high interest rates have already depressed sales and construction.

“These new tariffs will create additional headwinds for an already challenged housing market by further raising construction and renovation costs,” said Buddy Hughes, chairman of the National Association of Home Builders.

Some developers said the timing could stall projects.

William Cote — CEO of Hudson Meridian Construction Group in New York — told the Times many clients were preparing to move forward with projects after pausing during the rate hikes.

“Tariffs are obviously throwing a monkey wrench in all that and creating another uncertainty,” he said.

Potential tariff benefit, economists weigh in

The duties drew praise from the American Kitchen Cabinet Alliance, which thanked Trump for a “commitment to rebuild domestic manufacturing.”

Last month, the group urged the president to take new tariff action.

The American Home Furnishings Alliance told the Times that tariffs could benefit some U.S. factories — but added that “a complex global supply chain fuels both domestic manufacturing and import operations in the U.S. furniture industry.”

Economists warned the tariffs could ripple beyond housing.

“The direct impact is it’s going to be worse for the economy,” said Wayne Winegarden, an economist at the Pacific Research Institute.

“The housing market is not in a great place, to put it mildly,” said Redfin Chief Economist Daryl Fairweather.