Æðµã´«Ã½

This post has been updated.

President Trump has announced he will extend the 90-day pause on reciprocal tariffs that was due to end on July 9 for another three weeks until Aug. 1 and impose a 50% tariff on copper.

During a Cabinet meeting on July 8, Trump announced a new tariff on copper as part of his efforts to drill down on specific sectors. The 50% tariff is in line with the rates enacted on steel and aluminum in June. The U.S. imports nearly half of its copper — the majority of which is sourced from Chile — which is used in a variety of consumer goods, such as electronics, and housing applications. On July 9, Trump clarified the tariffs would go into effect Aug. 1 as well, with copper prices surging after each announcement.

At the same time, the president also began sending letters to several nations saying their tariff rates will be raised unless an agreement can be reached. Specifically, Trump sent letters to South Korea and Japan warning that he would raise tariffs on each country’s goods to 25% unless they can reach a deal by Aug. 1.

If 25% tariffs were to be placed on Japanese and South Korean goods coming into the U.S. after Aug. 1, it would have a ripple effect on the housing sector. Many of the major appliances and electronic products that go into homes, such as refrigerators, come from South Korea. Japan is a key exporter of construction machinery, including bulldozers, excavators, backhoes and graders. Prices on these product imports could be expected to increase in the months ahead.

Trump also sent letters to a dozen other nations warning they would face higher levies as the administration continues to negotiate trade deals ahead of the new Aug. 1 deadline.

Meanwhile, the blanket 10% tariff rate that has been applied to all nations since April remains in effect.

Æðµã´«Ã½ Actions on Proposed Section 232 Lumber Tariffs

Separately, the administration previously launched a Section 232 investigation on March 1 focusing on whether lumber imports constitute a threat to national security.

Æðµã´«Ã½ strongly disputes this notion and we filed comments with the U.S. Commerce Department not only refuting this claim but also underscoring that housing is a critical component of national security and that our nation is experiencing an acute housing crisis. Our letter stated that there is a nationwide housing shortfall of roughly 1.5 million units and that nearly one in four home owners are “cost burdened,” meaning they spend more than 30% of their household income on housing and utilities.

“Our housing crisis is a bigger threat to national security than imported lumber or timber,” Æðµã´«Ã½’s letter to Commerce Secretary Howard Lutnick stated. “Lumber from Canada simply does not present the same national security threat as oil from the Middle East or steel, aluminum, rare earth minerals, or advanced computing chips from China. The threat to national security comes from our nation’s housing crisis, not imported lumber.”

Æðµã´«Ã½ also emphasized that the U.S. imports roughly one-third of the lumber it consumes because domestic production of timber and lumber is insufficient to meet U.S. demand. “Even if the United States could eventually produce sufficient timber, it would take many years to build the necessary infrastructure to turn that timber into lumber,” the letter said.

Copper was also subject to a Section 232 investigation in February.

On July 7, Æðµã´«Ã½ staff met with Commerce Department officials to reiterate this message and explain that any additional tariffs, quotas or other trade restrictions will undermine national security by exacerbating an existing housing shortage. Æðµã´«Ã½ is seeking to work with Commerce officials to assure that U.S. home builders have a stable supply of affordable, high-quality lumber to build America’s housing.

We will continue to monitor developments and keep our members updated as new developments occur on the trade and tariff front.