New homes in the United States are on track to be more expensive due to President Donald Trump’s tariff policies, according to a new report. The tariffs are expected to raise the cost of supplies to build homes at the same time that the U.

Trump threatened to escalate tariffs beyond 35% if Canada opts to retaliate with tariffs on U.S. goods. Canadian goods are also subject to sector-specific tariffs, such as 50% levies on steel and aluminum as well as 25% tariffs on non-USMCA compliant autos and auto parts.