What Trump’s New Tariffs Could Mean for Buyers and Sellers in Hudson, WI

by Mark Johnson

You’ve probably heard about the new tariffs announced by former President Donald Trump. While this move is making headlines for its potential to shake up the U.S. economy, you may be wondering how it impacts you if you're buying or selling a home in Hudson, WI, or the Twin Cities area. Let’s break it down.

What Are These Tariffs All About?

In a nutshell, tariffs are taxes on imported goods. Trump’s new policy includes:

10% tariff on most foreign goods.
25% tariff on all imported vehicles.

Initially, countries like Canada and Mexico were exempt from the tariffs, but now they’ll face the 10% tax too.

The aim is to protect American jobs and boost domestic manufacturing, but in practice, tariffs usually end up raising prices for consumers—especially for things like building materials.

How These Tariffs Could Impact Home Prices Locally

Whether you’re building a new home or buying one, here's how these tariffs could affect you in Hudson and the surrounding areas.

Construction Costs Are Likely to Rise

About 10% of the materials used in U.S. home construction are imported, including:

Lumber from Canada
Drywall from Mexico

With the new tariffs in place, builders face increased costs—some estimates suggest $7,500 to $10,000 more per home. That’s likely to be passed on to buyers, making new homes even more expensive.

Resale Home Prices Could Increase Too

While new construction sees the most direct impact, higher costs for new homes can also affect resale prices. Here’s how:

Fewer new homes being built means more buyers will turn to existing homes.
Increased demand for resale homes, especially in popular areas like Hudson, could push prices up.

If you're thinking of selling your home, this may actually work in your favor. Less competition from new construction means your home could attract more interest from buyers eager to get in before prices go higher.

How Tariffs Could Affect Mortgage Rates

Tariffs don’t just affect goods—they can also impact inflation. And when inflation rises, mortgage rates often follow suit.

What This Means for Buyers

Mortgage rates are already hovering around 6.6% due to inflation pressures. If tariffs push prices even higher, the Federal Reserve may:

Delay rate cuts, keeping borrowing costs elevated.

While President Trump has claimed he could bring mortgage rates down to 3%, it’s important to note that presidents don’t have direct control over mortgage rates. If inflation continues to rise due to tariffs, rates might stay high—or even go higher.

On the flip side, if these economic moves cause a slowdown or recession, mortgage rates could eventually drop, but that's a big "if."

What Buyers and Sellers in Hudson and the Twin Cities Should Do Now

So, what should you do if you’re buying or selling in the Twin Cities metro or Western Wisconsin? Here’s a quick guide:

📍 If You’re a Buyer

Act sooner rather than later. Waiting for prices or mortgage rates to drop could backfire if they rise instead.
Consider resale homes. New builds will likely get pricier, so looking at existing homes might give you better value.
Stay informed. Keep an eye on mortgage rates and builder incentives to find smart buying opportunities.

📍 If You’re a Seller

Now might be your time. With fewer new homes being built, your home could stand out in a market with less competition.
Price strategically. Homes priced right in this market are still selling quickly, so make sure to set the right price.
Highlight value. Emphasize any updates or energy-efficient features in your home, especially since building costs are rising.

Bottom Line: Stay Informed and Plan Ahead

The real estate market in Hudson, WI, and the Twin Cities is always shifting. While these tariffs might cause some ripple effects, staying informed and understanding the impact on construction costs and resale values can help you make the best decision.

Whether you’re buying your first home or selling a long-time property, local expertise is key to navigating changes in the market.

If you're unsure how these changes affect your home buying or selling goals, I’m here to help. Let’s chat soon!

Ready to make a move in Hudson or the surrounding area?
Let’s talk! Contact The Johnson Group at Coldwell Banker Realty today to start your journey.

📞 Call us today at 651-333-7656
🌐 Or visit www.johnsonhomegroup.com
📍 Serving Hudson, WI and the greater Twin Cities metro area

Read the full article: https://www.realtor.com/news/real-estate-news/trump-tariff-liberation-day-housing-costs/

Written by Mark Johnson, REALTOR® and owner of The Johnson Group at Coldwell Banker Realty. With over 20 years of experience helping clients across Hudson, WI and the Twin Cities, Mark is passionate about delivering expert real estate guidance with a personal touch.