Construction and home costs could rise [Video]

The U.S. housing market was already struggling under the weight of high mortgage interest rates, a low supply of existing homes for sale and historically high home prices.

Now tariffs on building materials are adding even more pressure.

About 30% of softwood lumber consumed in the U.S. is imported, largely from Canada. Wallboard, known as gypsum, is imported from Mexico. The 25% tariff President Donald Trump levied on goods from the two key trading partners will make those products that much more expensive. The Mexico tariffs were postponed Monday for a month, but they are still on the table.

“More than 70% of the imports of two essential materials that home builders rely on — softwood lumber and gypsum — come from Canada and Mexico, respectively,” Carl Harris, chairman of the National Association of Home Builders, wrote in a release. “Tariffs on lumber and other building materials increase the cost of construction and discourage new development, and consumers end up paying …