Washington, D.C. – U.S. Senator Lisa Blunt Rochester (D-Del.), member of the Senate Banking, Housing and Urban Affairs Committee, Senator Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking, Housing and Urban Affairs Committee, and Senator Jeff Merkley (D-Ore.), Ranking Member of the Senate Budget Committee, led 19 Senators in a letter to President Trump making clear how his chaotic, across-the-board tariffs are increasing housing costs for Americans already struggling to afford rent or achieve their dream of homeownership. Today’s letter follows last night’s Senate vote when almost every Senate Republican bent the knee to President Trump by voting against a resolution to end his tariff chaos.
“We write today amidst reports that your disastrous trade policies will raise housing costs for Americans. We demand that you immediately reverse course and refocus your attention on policies that will address our nation’s housing crisis—not exacerbate it,” wrote the Senators.
“Your tariffs on aluminum, steel, appliances, and other materials will ‘undoubtedly’ raise the cost of constructing new homes — by at least $7,500 to $10,000, according to the National Association of Home Builders,” the Senators continued. “Analysts also predict that your tariffs will drive up home insurance premiums by “making repairs more expensive,” harming renters and homeowners alike.”
“Your tariffs and the economic uncertainty they are creating are also putting pressure on interest rates, which will increase the cost of home building even more while raising mortgage rates for families looking to buy a home,” the Senators wrote. “In early April, mortgage rates surged to their highest level in more than a month amid your various tariff announcements. If China retaliates against your tariffs by selling off U.S. Treasury bonds or U.S. mortgage-backed securities, that could also result in higher costs.”
Signers of the letter also include Senators Cortez Masto (D-Nev.), Gillibrand (D-N.Y.), Heinrich (D-N.M.), Klobuchar (D-Minn.), Murray (D-Wash.), Luján (D-N.M.), Peters (D-Mich.) Reed (D-R.I.), Rosen (D-Nev.), Sanders (D-Vt.), Schatz (D-Hawaii), Schiff (D-Calif.), Shaheen (D-N.H.), Van Hollen (D-Md.), Warnock (D-Ga.), and Welch (D-Vt.).
The Senators’ full letter can be found here and below:
Dear President Trump:
We write today amidst reports that your disastrous trade policies will raise housing costs for Americans. We demand that you immediately reverse course and refocus your attention on policies that will address our nation’s housing crisis—not exacerbate it.
America is in the midst of a nationwide housing shortage. By some estimates we need 5 million units to fill the gap.Housing costs have skyrocketed over the past few decades, outpacing families’ incomes and pushing homeownership out of reach for millions. Across the country, renters and would-be buyers struggle to afford housing—leaving households cost-burdened and unable to invest in the future.
During your campaign, you promised to address America’s housing crisis and on day one of your Administration you signed an executive order to pursue “appropriate actions to…lower the cost of housing and expand housing supply.” Yet your reckless trade policies will only make the crisis worse. Your recent announcement of sweeping tariffs—and the subsequent, ongoing responses of our trading partners and your repeated waffling on your plans for tariff implementation—have created significant confusion in the housing sector. What is clear, however, is that your tariffs on aluminum, steel, appliances, and other materials will “undoubtedly” raise the cost of constructing new homes — by at least $7,500 to $10,000, according to the National Association of Home Builders. Analysts also predict that your tariffs will drive up home insurance premiums by “making repairs more expensive,” harming renters and homeowners alike.
Your tariffs and the economic uncertainty they are creating are also putting pressure on interest rates, which will increase the cost of home building even more while raising mortgage rates for families looking to buy a home. In early April, mortgage rates surged to their highest level in more than a month amid your various tariff announcements.7 If China retaliates against your tariffs by selling off U.S. Treasury bonds or U.S. mortgage-backed securities, that could also result in higher costs.
Furthermore, your tariffs are increasing the likelihood of a recession, which would only further exacerbate Americans’ ability to afford their rent, pay their mortgages, and invest in homeownership.
When used strategically and effectively, tariffs are a valuable economic tool to combat unfair trade practices and ensure a level playing field for American industry and workers. Your tariffs are neither strategic nor effective: instead, they are sowing global chaos at Americans’ expense and making the housing crisis even worse. We demand that you reverse course and refocus your attention on economic policies that will truly benefit the American public, including efforts to address our housing crisis.
Sincerely,
###
Senator Lisa Blunt Rochester represents Delaware in the United States Senate where she serves on the Committees on Banking, Housing, and Urban Affairs; Commerce, Science, and Transportation; Environment and Public Works; and Health, Education, Labor, and Pensions.