1. New tariffs could raise building costs by 25% on Canadian and Mexican imports. 2. D.R. Horton (DHI) shares fell over 3% amid broader market decline. 3. 70% of softwood lumber for U.S. building comes from Canada and Mexico. 4. Tariffs may increase home prices by $5,000 to $7,000 per home. 5. Construction costs rising will discourage new development, impacting homebuyers.
Tariffs will likely raise construction costs, impacting DHI profitability and share price. Past tariff impositions have led to noticeable increases in construction costs and home prices.
Changes in tariffs directly influence input costs for DHI; thus relevant to stock movement. The relationship between tariffs and market prices indicates a significant potential impact on profitability.
Immediate impact from tariffs is likely to affect near-term profit margins for DHI, as costs will be felt quickly. Similar past tariff announcements have caused immediate stock reaction.