Progressional tariffs in Canada and Mexico could exacerbate the housing crisis in the US and threaten the wider economy, with dozens of Congressional Democrats warning Donald Trump.
The US president is considering how to proceed after approving a month’s delay after threatening to hit imports from the two largest US trading partners with a 25% tax.
In a letter to Trump seen by the Guardian, Democrats pointed out that the US imports billions of dollars worth of key construction materials from Canada and Mexico each year.
“In light of serious housing shortages due to rising construction costs, sustained supply chain disruptions and shortage of estimated 6m homes, these looming tariffs aim to protect domestic industry. There is a risk that further exacerbate the crisis of housing supply and affordability while suppressing development. “The new homes are the risk of exacerbating the crisis.
In a statement, the White House argued that Trump will use tariffs to “enter a new era of growth and prosperity” in the United States.
Trump has repeatedly vowed to impose tariffs on Canada and Mexico. The move he said his country’s neighbors would work harder, reduce the number of immigrants across the US and try to curb the flow of fentanyl.
However, the proposed obligation is dominated by the storm. It has collided with all imports from both countries, raising concerns that prices could be raised across the US economy. Trump was pulled back from the brink earlier this month after an 11-hour talk with Mexico’s Claudia Sheinbaum and Canada’s Justin Trudeau.
US officials are in talks with both countries ahead of the new deadline on March 4, when tariffs are expected to come into effect.
More than 40 Democrats in the California House, Jim Costa, estimate that the White House will increase import costs by combining proposed Canadian and Mexico tariffs with obligations already charged for Chinese products. He urged the White House to do so. Construction materials cost up to $4 billion.
Such increases often “will be handed over to consumers, directly contributing to rising home prices and slowing down new construction activities, putting an additional burden on American families,” they wrote.
“Immediate action demonstrates the leadership that not only protects American families from growing housing costs, but also leads our country towards sustainable economic growth,” the representative wrote to Trump. Ta. “We are ready to work with you and other stakeholders, and safe and affordable housing is accessible to all citizens, while developing a balanced trade policy that will strengthen domestic manufacturing. I’ll do that.”
Representatives – all Democrats – to “collaborate” with the White House on “solutions that promote robust economic growth, protect American families and ensure a vibrant housing market for the future.” He emphasized that he is looking forward to it.
White House spokesman Kush Desai said: There is no inflation. In his second administration, President Trump will again use tariffs to level the arena, leading a new era of growth and prosperity for American industry and workers. ”
