Tariffs imposed by the Trump Administration will add burden to homeowners and businesses as they rebuild their properties affected by Hurricane Florence. As the flood waters recede and homeowners and businesses started to rehabilitate, the imposed tariffs increased the cost of construction materials.
Contractors and home builders expressed their concern that the administration's trade policy will increase the raw material process that usually follows natural disasters. It was reported that the United States plans to impose tariffs on $200 billion Chinese imports next week in addition tariffs imposed to other raw materials like lumber, steel, and aluminum. The new tariffs will be imposed on items that include an ingredient in drywall like countertops, furniture, and gypsum. It was estimated that the construction material costs will increase by 20 to 30 percent higher than their prices without the tariffs.
Alan Banks, president of the North Carolina Home Builders Association told the New York Times said that the American people will pay the price for the tariffs in terms of higher construction costs.
It is expected that the cost increase will greatly affect people in areas that are affected by torrential rains and winds during the landfall of Hurricane Florence like North and South Carolina just weeks ago.
It was reported that North Carolina communities experienced flooding as heavy rains drop in the area during the onslaught of Florence. The residents in the area are now struggling to return to their normal lives as they started performing life-saving measures and as they assess the damages the typhoon left behind to their homes.
It is expected that wet drywalls soaked in floodwaters in many homes will be removed and homes affected by the strong winds of the hurricane needs structural repairs. Repairs are also needed in building facades as the effect of the hurricane's wind.
Skip Greene, a contractor in North Carolina, told the New York Times that in the short term, the tariffs are hurting them. Mr. Greene was already forced to table a project because of the tariffs. He said that he is hoping that going through all the pain caused by the tariffs is worth it in the end. He added that he could not move ahead with building affordable housing because of the on-going tariff war between the U.S., China, and Canada.
Moody's analysis concluded that cost of the damage brought by the Hurricane Florence is estimated between $38 billion and $50 billion in damage and economic losses to the country.
