BiggerPockets Daily Today's Historic Round of Tariffs Could Radically Shift the Economy
Apr 2, 2025
A major tariff policy is on the horizon, potentially reshaping the U.S. economy. Dubbed "Liberation Day," it aims to bolster manufacturing and boost government revenue. Yet, questions loom about its effectiveness and the impact on inflation and job markets. The podcast delves into how tariffs affect industries, especially construction, and the risk of stagflation. Listeners also learn about the complex relationship between tariffs and real estate investments, emphasizing the need for caution amid economic uncertainty.
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Who Pays Tariffs?
- Tariffs are often misunderstood as taxes paid by foreign countries.
- In reality, US companies importing goods pay these tariffs, often passing the cost to consumers.
Canadian Lumber Tariff: A Questionable Move
- Matt questions the rationale behind tariffing Canadian lumber.
- He points out the logistical challenges and costs associated with establishing a US lumber industry, particularly in Alaska.
Real Estate Impact of Tariffs
- Tariffs are inherently inflationary in the short term, potentially impacting consumer prices and interest rates.
- This could lead to a slowdown in new construction, exacerbating the existing housing affordability crisis.