The potential tariffs suggested by President Donald Trump on imports from Canada and Mexico, as well as existing tariffs on Chinese goods, threaten to escalate U.S. home prices amid an already severe housing shortage. According to industry leaders, the mere uncertainty about these tariffs could inflate building costs by disrupting supply chains and delaying home construction. Estimates suggest that if the 25% tariffs on Canada and Mexico are implemented, the average newly constructed home could see a price hike of up to $40,000, equating to a 10% increase in costs. This is a significant concern, especially since crucial building materials such as Canadian lumber and Mexican gypsum for drywall are heavily reliant on imports. Even a temporary pause in these tariffs fails to alleviate the market's anxiety over potential impacts, with housing economists highlighting that increased costs for materials could further exacerbate the challenges of housing affordability in the U.S.