While not everyone has their anticipated costs down on what the pending tariffs announced by the White House will be on a new manufactured home, one HUD Code builder provided costs, and another factory building pro gave the Daily Business News other related facts.
It is important to note that what President Trump signals may be an opening bid, a bargaining move, said one industry source that is not completely convinced that the tariffs will take place at all.
But if they do happen, here’s the list of items impacted.
“Most all factories have material surcharges because the cost of material for them has increased so dramatically,” said one production veteran. “With the improved economy none of the commodity suppliers has inventory in their warehouses. They are shipping their production immediately including steel companies.”
“Steel is in more than the frame though,” he said. “Most plants use corrugated steel, which lessens the amount needed but it is still in the appliances, light fixtures, closet shelving, plumbing, window frames, wheels, stove vents, fireplace vents, attic vents, etc. The five largest cost in a home are Lumber, Steel, Appliances, Carpet and Fixtures.”
Soffits, and storm doors are often aluminum, said that source. Meanwhile, appliances and fixtures will include the use of steel, as will exterior doors. Sliding glass doors and windows will also have metal components.
COST$ Increases Are Expected to Be…
Another manufacturer had some numbers at hand.
“If the increase [from the tariff, whose precise amount is not yet know] is 10 percent, it will increase cost around $150 to $200. Will take that number and divide by desired BOM and that will be your increase.” The award winning producer added that for the “Bill of material use 60 percent.”
Beyond the Campaign Promises, Why the White House is Announcing Tariffs
Newsmax provided the following tariff related presidential tweets. They summarize the White House rationale.
In an interesting twist, Democrats are often more likely to embrace these tariffs than the GOP is.
That said, in the video below, a strong case is made for the national defense and economic protection the tariffs are designed to bring.
The markets were more muted today, but the Dow still slid. When the details of the plan are announced next week, some market moves are to be expected. But there are voices that say that like the Fed concerns, it will likely smooth out, as the net costs are fairly low. On a typical car, the estimates range from $30 to $45 on a mid-priced car, while a can of beer will go up about 1-to-1.5 cents for each can.
For prior reports, click the above and below.
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Submitted by Soheyla Kovach to the Daily Business News for MHProNews.com.
Soheyla is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.