Yesterday, President Donald Trump implemented import tariffs on goods coming from Canada, Mexico and China, these tariffs are: Canada, 25%; Mexico, 25% and China, 20%. These tariffs may be fleeting or may last, there is no way to know now. However, an analysis of the impact on construction costs is essential to understand the impact on consumers buying a new house, renovating an existing house or adding on to an existing house.
Based on recent import‐data analyses of materials used in residential construction, roughly 7% of the total building materials in a typical U.S. home come from foreign sources.[1]
. Breaking down that imported portion, the major contributors are:
- China: About 27% of the imported materials
- Mexico: Roughly 11%
- Canada: Around 8%
The remaining imported share (roughly 54% of the 7%) comes from a mix of other countries—including various European and Asian nations—which together account for the balance of imported building materials.
Be aware that these are averages, in each individual home or type of construction these percentages will vary.
Of the 7% of imported materials in residential construction:
- Chinese imports: 27% of 7% ≈ 1.89% of the total cost
• Mexican imports: 11% of 7% ≈ 0.77%
• Canadian imports: 8% of 7% ≈ 0.56%
Now, applying the tariffs:
- For Chinese materials (20% tariff):
Increase = 1.89% × 20% ≈ 0.38% of total cost
• For Mexican materials (25% tariff):
Increase = 0.77% × 25% ≈ 0.19%
• For Canadian materials (25% tariff):
Increase = 0.56% × 25% ≈ 0.14%
Adding these up:
0.38% + 0.19% + 0.14% ≈ 0.71%
That means, all else being equal, the tariffs would add roughly 0.7% to the overall construction cost.
For example, on a typical $600,000 home, a 0.7% increase translates to about $4,200 in additional costs.
To impose tariffs on imported goods importers normally employ customs brokers to calculate and pay the tariffs. There is going to be a massive increase in imported materials subject to tariffs. Importers may under declare the cost of goods. Underpayment of customs duties (the tariffs) will result in much additional work by the U.S. Custom and Border Protection staff and prosecution by lawyers of the U.S. Justice Department.[3] The U.S. Custom and Border Protectioon staff are already understaffed and occupied with illegal immigration. The imposition of broad scale tariffs is economically unjustified and will hurt the U.S. consumer and our Canadian and Mexican allies.
[1] National Association of Home Builders, Import Data for Residential Construction Materials, by Jesse Wade, December 13, 2024
[2] Ibid.
[3] New York Times, Trump’s New Tariffs Could Strain Collection of Customs Fees, Peter Eavis, March 4, 2025