Tariffs Struck Down: Lower Building Costs?

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News Flash

Tariff Takedown: Court Ruling Could Slash Building Material Costs

Homebuilders just caught a break. A federal court has unanimously struck down former President Trump's recent tariffs on imported goods, potentially lowering construction costs across the industry.

On May 28, the U.S. Court of International Trade ruled the tariffs exceeded presidential authority under the 1977 International Emergency Economic Powers Act. [Source]. The court ordered the administration to stop imposing these specific tariffs within 10 days and indicated that already-collected tariffs should be "vacated." [Source]

What's at stake? The ruling challenges four executive orders that added varying tariffs on imports from China, Mexico, and Canada, plus a 10% retaliatory tariff on many other goods. [Source]

For residential construction, this translates to potentially lower costs for imported building materials—lumber, steel, and other components that have been pinching margins. Homebuilder stocks rallied on the news, suggesting investors see real upside potential.

But don't celebrate just yet. The Trump administration has already appealed the ruling, which means things could still change. [Source]. The administration could also explore other legal avenues to impose new, potentially more limited import fees. [Source]

The smart play? Keep a close eye on this legal tug-of-war—your next project's budget may hang in the balance.

More You Should Know

• Time for a Rebound?: After the slowest April since the financial crisis, Zillow predicts a U.S. home sale rebound. [Source]

• Home Vacancy Rate Holds Steady: The U.S. home vacancy rate has remained consistent at 1.3% for 13 straight quarters, signaling a healthy housing market with low "zombie" property rates, despite a marginal rise in foreclosures, and notable regional variations in vacancy rates. [Source]

• NAR Focuses on PR: The National Association of Realtors (NAR) has appointed Bennett Richardson and Raffi Williams to key communications roles, enhancing CEO Nykia Wright's efforts to boost transparency and advocacy within the real estate industry. [Source]

• Credit Unions Lead CRE Lending: In the first quarter of 2025, credit unions significantly outpaced other lenders with a 62% year-over-year surge in commercial real estate loan originations, signaling renewed momentum in CRE lending despite overall levels remaining below 2022. [Source]

• Housing Costs Deter Buyers, Relief Nears: High housing costs are slowing pending home sales, but a Redfin report indicates that declining prices and increasing inventory may soon offer relief and improved affordability for homebuyers. [Source]

• AI Powers FMLS Listings: Ocusell and Restb.ai have partnered to integrate AI into Ocusell List, initially for FMLS, to automate real estate listing feature tagging and description generation, aiming to save agents time and enhance accuracy. [Source]

• Mortgage Rates Edge Down: Despite expert expectations of continued elevated rates, recent data from late May 2025 indicates a slight decrease in average 30-year fixed mortgage rates, offering a minor reprieve for real estate investors and professionals. [Source]

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