Trump's Second-Term Shutdown Uncertainty Meets Housing Market Tariff Challenges
The federal government has entered a shutdown, with President Donald Trump, who began his second term on January 20, 2025, at the helm. Market uncertainty has risen, but the bond market has remained resilient. Meanwhile, the housing market faces new challenges with recent news and a delayed jobs report.
The Trump administration has imposed a 10% tariff on timber and lumber imports, along with an additional 25% tariff on kitchen cabinets. These new duties, effective October 14, have the potential to significantly increase the price of newly built homes by several thousand dollars. Existing anti-dumping and countervailing duties remain in effect.
The federal government shutdown, which may be prolonged like previous ones, has contributed to market uncertainty. However, the bond market has handled the situation well so far. The Oct. 3 jobs report, which helps guide the Federal Reserve's decisions, will not be released due to the shutdown. The Fed has recently cut rates to ease market uncertainty and is forecasting another cut by the end of the year.
Despite these challenges, the housing market shows signs of growth in certain areas. Realtor.com and NAHB's 2025 Top New-Construction Metros report highlights markets primarily in the South, with a few outliers like Madison, Wis., in the Midwest, seeing growth in single-family home building.
President Trump, in his second term, faces a federal government shutdown that may be prolonged, contributing to market uncertainty. New tariffs on timber, lumber, and kitchen cabinets could significantly increase the price of newly built homes. While the bond market has remained resilient, the delayed jobs report may impact the Federal Reserve's decision-making. Despite these challenges, the housing market shows growth in certain regions.
