US Democrats Claim Trump’s Tariff Plan on Canada and Mexico Could Worsen US Housing Crisis

Dozens of congressional Democrats have cautioned Donald Trump that his proposed tariffs on Canada and Mexico could intensify the ongoing housing crisis in the United States and negatively impact the broader economy. The president had initially threatened to impose a 25% tariff on imports from the country’s two largest trading partners but recently delayed the decision by one month.

In a letter addressed to Trump and obtained by The Guardian, Democratic lawmakers emphasized the importance of imported construction materials—such as lumber and cement—from Canada and Mexico, which are essential to the housing industry. They argued that implementing such tariffs could drive up costs and further strain an already struggling housing market. With an estimated shortage of six million homes and persistent supply chain disruptions, the representatives warned that the tariffs, while aimed at protecting domestic industries, could significantly worsen housing affordability and slow down new development.

The White House defended Trump’s stance, asserting that the tariffs are designed to strengthen the American economy. The administration has framed the proposed duties as a strategy to encourage neighboring countries to take action on issues such as immigration control and drug trafficking. Despite initial plans to move forward, Trump recently postponed the enforcement of the tariffs following last-minute negotiations with Canadian Prime Minister Justin Trudeau and Mexican President-elect Claudia Sheinbaum.

With the new deadline set for March 4, U.S. officials continue discussions with both nations. Meanwhile, more than 40 House Democrats, led by Representative Jim Costa of California, urged Trump to reconsider. They cited industry estimates suggesting that the proposed tariffs—alongside existing duties on Chinese goods—could increase the cost of imported construction materials by up to $4 billion. Such cost spikes, they argued, would inevitably be passed on to consumers, leading to higher home prices and reduced construction activity, putting further financial strain on American families.

Democratic lawmakers stressed the need for a trade policy that supports domestic manufacturing while ensuring housing remains affordable. “Immediate action will not only shield American families from escalating housing costs but also demonstrate leadership in steering our nation toward sustainable economic growth,” they wrote. Despite their concerns, Trump remains steadfast in his belief that tariffs will boost domestic industries and strengthen the U.S. economy.