Tariffs to Raise Cost of Rebuilding After Hurricane Florence
Home builders and contractors say the Trump administration's trade policy will boost the cost of construction materials as the floodwaters from Hurricane Florence recede and rebuilding begins. In addition to materials like lumber, steel, and aluminum, another $200 billion in tariffs on Chinese imports will affect countertops, furniture, and gypsum, a key ingredient in drywall. Some expect construction costs to rise 20 percent to 30 percent more than they would without these tariffs. The biggest impact could come from wood prices, which are up 40 percent from a year ago due to a 20 percent tariff on Canadian softwood lumber as well as supply shortages. Skip Greene, a contractor in Kinston, N.C., said, "We intend to pass on the price of rebuilding to insurers, but that will be reflected in higher premiums." On government projects, he added, "We, as taxpayers, will pay." However, insurers likely will pick up only a small portion of the costs of rebuilding, as standard homeowners policies exclude flood damage.