Mobile, Ala. (Wala) – A local wooden business owner announced how new tariffs for imported goods from Canada could affect prices and the real estate market.
This is done according to an executive regulation issued by President Trump.
Although the executive regulation was temporarily delayed for 30 days, it would impose new tariffs for imports for one of the largest wood providers in the world.
For those who bought wood in the future or consider house construction projects, a tariff of 25% for goods from Canada could ultimately mean a price increase.
The owner of Mobile Lumber and Millwork, Jim Henderson, said that if the proposed tariffs go through, he expected challenges.
“We will be very affected,” he said. “Our business will reduce in half.”
Henderson said this could not only influence the wood industry, but he also believes that the real estate market will also score a goal.
“If you take over the price of wood and other building materials for another 25% … you will increase the price and I know that it depends on the size of the house and exactly where it is in the United States, but you” I ” Will increase the price of an average house in our market here, “said Henderson.
He said his company gets part of her wood from Canada and adding tariffs can mean that prices have to change.
“Most of the frame used in houses,” he said. “Most of it comes from Canada.”
He said he was not confident that the increase in tariffs will happen by 25%, but if this is the case, he thinks ahead.
“I think we'll have more expenses,” he said. “I don't think we will achieve an increase of 25%, but if we drive sales with homes, we will continue to decrease.”
But even if that happens, Henderson said that his company was ready to deal with it.
“I'm not worried,” he said. “In fact, I now spend half a million dollars improving my facilities. Why should I do that when I thought it would be doomed to fail? “
The proposed increased tariffs for Canadian goods are in the queue for a month.
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