This year, the National Association of Home Builders’ Remodeling Market Index revealed that in the fourth quarter of 2017, the RMI reached 60 for the second time since 2001.
Although the demand for home renovation has continued to increase in 2018, recently imposed tariffs are expected to reduce affordability for homeowners seeking renovations, according to an article written by Diana Olick for CNBC.
As of today, President Donald Trump has imposed a 10% tariff on $200 billion of Chinese imports. The Chinese are expected to retaliate with a 5 to 10% tariff on $60 billion of U.S. exports, according to Capital Economics.
According to Olick, NAHB claims that about $10 billion worth of Chinese products are exclusive to home building and remodeling.
Furthermore, the tariff starts at 10% and could potentially increase by 25% by the end of 2018. The NAHB notes this could be the equivalent of a $2.5 billion tax increase on…