Shares of a number of homebuilders and development firms misplaced floor Monday on worries that new tariffs might elevate constructing prices. 

D.R. Horton (DHI), Lennar Company (LEN), Toll Brothers (TOL), and PulteGroup (PHM) shares all fell greater than 3% Monday, amid broader market declines after President Donald Trump signed executive orders over the weekend calling for 25% tariffs on Canada and Mexico, and 10% tariffs on China. The tariffs had been set to enter impact Tuesday, earlier than Trump on Monday agreed to delay the tariffs on Canada and Mexico for a few month.

Tariffs Might Increase Costs for Homebuyers as Constructing Prices Climb, NAHB Says

Nationwide Affiliation of Residence Builders Chair Carl Harris stated on Saturday that the transfer might improve costs for homebuyers as prices rise for builders, with some 70% of the softwood lumber and gypsum imported into the U.S. for homebuilding coming from Canada and Mexico, respectively.

“Tariffs on lumber and different constructing supplies improve the price of development and discourage new growth, and shoppers find yourself paying for the tariffs within the type of increased house costs,» Harris stated in an announcement.

Lennar executives stated within the firm’s earnings name final month that tariffs might add an estimated $5,000 to $7,000 to the price of every house it builds.