SAN DIEGO (KGTV) — Mendez Construction is currently working on seven new home projects across San Diego. One of the key materials they are using for the foundations is steel.
With new 25% tariffs on steel and aluminum, projects like new homes are expected to be a lot more expensive. Since the beginning of February, vendors have been warning Mendez Construction that prices on materials are going to rise.
Many of the price hikes from vendors have been from the threat of tariffs. This also includes materials — like drywall and lumber — both essential to constructing homes. The National Association of Homebuilders reports new tariffs could add an additional $7,500 to $10,000 to the price of a new home.
President of Mendez Construction Jaime Mendez is working to minimize the impacts on his current projects. For future projects, it won't be as simple.
"We're trying to get [vendors] to respect the process that we had when we signed the contracts," Mendez said. "If it's a new contract, new date, then the new price is going to hit on it".
President Trump is using the tariffs as a tactic to bring companies to invest more in U.S. factories and manufacturing. He believes a larger percentage of the tax will push companies to make the move.
The Trump administration has already rolled back tariffson countries like Mexico and Canada multiple times. For companies like Jaime's, it's a wait-and-see game. It's still up in the air how long the tariffs on steel and aluminum will stay in place.
Until the tariffs stay in place for an extended period of time, businesses won't have a full grasp of how tariffs are going to affect prices.
