New tariffs imposed by US President Donald Trump on wood and furniture will come into effect from Tuesday, making building a home in America even more expensive.
The White House says that these tariffs are being imposed to promote American industries and protect national security.
What are the tariffs?
Starting Tuesday, imports of softwood lumber into the U.S. will face a 10% tariff, and some upholstered furniture and kitchen cabinets will be hit by a 25% tariff.
Some tariffs are due to increase from January 1 next year, when the levy on imports of upholstered furniture will increase to 30% and on imports of kitchen cabinets and vanities to 50%.
However, some trading partners that have made deals with the Trump administration would not be as badly affected by the second increase.
Thus UK wood products will face no more than a 10% tariff and products from the EU and Japan face a 15% cap.
Who will be most affected?
Canada, which is the main supplier of lumber to the US, will be particularly hard hit, as the country already faces anti-dumping and countervailing duties of 35%, meaning the new tariff brings the levy on Canadian lumber to 45%.
Vietnam, Mexico and China, as major exporters of furniture to the US, would also face major impacts from the tariffs.
Experts say the new tariffs will increase construction costs, making things even more challenging for homebuyers in an already tough market.
Since taking office in January, the Trump administration has caused considerable turmoil in world markets by imposing arbitrary tariffs on many imported goods, including metals and cars, arguing that the US has long been the victim of unfair trade practices by other countries.
Edited by: Wesley Rahn