Builders in Southern California are bracing for new tariffs expected to hit April 2, which could drive up construction costs and slow down recovery from the January wildfires.
The U.S. gets the majority of its lumber from Canada, and the gypsum used to make drywall comes from Mexico. With President Donald Trump’s 25% tariff on goods from both countries set to take effect next week, Peter Tateishi with the Associated General Contractors of America said housing costs could skyrocket by 39% to 49%.
“It becomes like, can we afford to rebuild right now?” Tateishi told KNX News’ Karen Adams. “Can we afford to start a project right now?”
He added that the uncertainty around the tariffs – which have been repeatedly announced, implemented, and delayed in the two months since Trump took office – is hampering new construction from getting off the ground, with at least two multi-million-dollar projects in Southern California already put on hold.
“This whiplashing effect of will they, won't they is causing problems for developers on whether or not they can pull the trigger on moving forward with these projects,” he said.
Want to get caught up on what's happening in SoCal every weekday afternoon? Click to follow The L.A. Local wherever you get podcasts.
According to the National Association of Home Builders, the new tariffs will raise the cost of imported construction materials by more than $3 billion.
Follow KNX News 97.1 FM
Twitter | Facebook | Instagram | TikTok