American strikes treat Canada to pause rates for a month
That whsming sound that you hear are house builders who breathe a sigh of relief.
The Canadian President Justin Trudeau announced on Monday afternoon that the US and Canada have agreed to pause the rates of 25% that President Donald Trump placed on Canadian goods for a month. That only came a few hours after the Trump and Mexican President Claudia Sheinbaum agreed to pausage 25% rates on Mexico.
During the monthly break, the US will negotiate with both Canada and Mexico for a longer -term scheme.
It is welcome news for the home construction industry, which is highly dependent on imports from both countries. According to data from John Burns Research & Consulting, 20% of hardware imports come from Mexico, while 70% of the import of wood products come from Canada.
In exchange for the pause in rates, Canada will strengthen the border of the border with the intention of putting the flow of Fentanyl in the US, this will include Canada calling a fentanyl tsar and the launch of a “joint strike of the strike of The US canada to tackle the problem can also set up $ 200 million for the effort.
Trudeau said his country will implement a $ 1.3 billion border protection plan that was announced in December, including 10,000 extra staff on the border and new technology, including updated helicopters.
Earlier on Monday, Sheinbaum agreed to use 10,000 troops in the northern border of Mexico to limit illegal immigration and drug trafficking.
In the run -up to the agreement, Canada had a more combative attitude towards American rates than Mexico. Canada placed its own 25% rate on American goods as a retribution, and Ontario Prime Minister Doug Ford said prior to the agreement that the province ended a contract with Elon Musk Starlink.
Financial markets responded poorly to the rates during the weekend, with large indices from Monday a decrease of approximately 2% before they return somewhat. Homebuilder shares were struck particularly hard, with large public builders between 3% and 5% close. Lumber Futures also rose throughout the day.
On Friday, the National Association of Homebuilders (NAHB) sent a letter to the Trump administration asking for a tariff exemption on building materials. Although builders have generally been optimistic about achieving a favorable conclusion for the tariff threats, the trade group emphasized the negative impact that would have rates on house prices.
“While home building is inherent inherent, builders are trusting components that are produced abroad, whereby Canada and Mexico represent almost 25% of the import of the building materials,” the letter said. “The imposition of additional rates for this import will lead to higher material costs, which will eventually be passed on to buyers of houses in the form of increased house prices.”
An analysis of 2018 from NAHB estimated that rates have added around $ 9,000 to the costs of building a single -family home, with the costs of wood that at that time rises by almost 80% by almost 80%.
As far as fentanyl is concerned, the deal with Mexico is more important. According to data from American customs and border protection quoted by CNNOnly about 0.2% of the Fentanyl seized by the authorities come across the Canadian border compared to 96.6% across the Mexican border.
