Businesses and stock traders alike have welcomed President Donald Trump’s announcement of a 90-day pause on tariff increases yesterday. However, this temporary reprieve has done little to alleviate the uncertainty surrounding the administration’s long-term trade strategy. The sweeping tariffs initially announced on April 2 remain a looming threat, with far-reaching implications for the U.S. economy and the commercial real estate industry. Plus, the 10% duty on most countries is staying in place, and China is being hit hard with an astronomical 125 percent rate.
If the tariffs under the 90-day pause are reinstated, their impact will ripple across every sector, particularly construction and real estate. The cost of construction materials, many of which are imported, has already risen, and further increases could exacerbate the situation. Economists warn that the trade war raises the likelihood of a recession, which would inevitably slow commercial real estate dealmaking and activity.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
