Anthony Cabrera recently completed the construction of his three-bedroom house in Hopatcong, New Jersey, just ahead of a new wave of tariffs on essential building materials and home furnishings. Starting in March, Cabrera worked diligently with a contractor to finalize his project before the tariffs took effect earlier this week. Despite his efforts, his initial budget of $300,000 surged to $450,000 due to rising costs for imported items like cabinets from Asia. ‘Tariffs were definitely on my mind throughout the whole process,’ Cabrera remarked, expressing concern over the escalating expenses. His experience mirrors the challenges faced by many homebuyers, builders, and renovators across the US. The White House argues that these tariffs aim to bolster domestic manufacturing and safeguard national security. However, economists warn that they could exacerbate the housing market’s struggles by increasing construction costs and slowing down projects. Peter Harrell, a visiting scholar at Georgetown Law School, noted, ‘The last thing an already not great new construction market needs is higher input costs.’ The new tariffs, which include a 50% levy on steel and copper imports, are part of a broader series of measures that could further inflate prices for consumers. Goldman Sachs estimates that US consumers will bear up to 55% of the cost of these tariffs this year. Furniture companies, including RH and IKEA, have already warned of potential price hikes, while smaller businesses like Jean Lin’s Manhattan-based design gallery, Colony, have seen reduced sales due to tariff-related uncertainties. The National Association of Home Builders has expressed concerns that these tariffs will create additional challenges for an already strained housing market, particularly affecting affordable housing projects. While some economists believe the tariffs alone won’t spell disaster for the industry, they acknowledge that the cumulative impact could be significant. ‘It’s yet another unwelcome thing that they have to deal with now,’ said Jake Krimmel, a senior economist at Realtor.com.