The proposed tariffs on steel at 25 percent, and aluminum at 10 percent, would make new construction homes more expensive, says National Association of Home Builders’ research economist Scholastica (Gay) Cororaton.
Last year, the United States imported steel and aluminum assets worth $47.83 billion. This year, tariffs would be imposed on those same products. While such imports account for only 2 percent of the total goods imported by the U.S., worth $2.34 trillion, the impact on the housing and automotive industries will feel the most impact, concludes the National Association of Home Builders.
The tariff is intended to shift import spending to domestic spending and to spur employment, but the intended effect will be frustrated if other countries retaliate. The 10 largest U.S.-export destinations (in 2017) were Canada, Mexico, China (and Hong Kong), Japan, the United Kingdom, Germany, South Korea, Netherlands, and Brazil. The major export commodities were civilian aircraft/ engines/parts, petroleum and other oil products, computer processors, and motor vehicles/parts. States exporting these commodities to these countries may be impacted in the event of significant retaliation.
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