International taxes

The import taxes — initially set at 25% for cabinets, vanities and upholstered wooden furniture — officially took effect on Tuesday at 12:01 a.m. New York time.

Federal Reserve Vice Chair Philip Jefferson said despite the near term cloudiness to economic projections, he does expect inflation to resume its downward trajectory next year and reach the Fed's 2% inflation target in the coming years.

Trump administration tariff policy led lumber futures prices to surge over the first half of 2025, but the front-loading of purchases led to a current glut.

Even with direct costs of import taxes excluded, prices for residential construction goods and services increased by the most in two years, NAHB said.

Core CPI, which excludes food and energy, rose to 3.1%, up from 2.9% in June.

Federal Reserve Vice Chair for Supervision Michelle Bowman said she foresees three interest rate cuts for this year, a view bolstered by the latest employment data.

President Trump's imposition of sweeping tariffs on more than 90 countries Thursday represents a major shift in the U.S. trade stance, but the impact on inflation, the Federal Reserve and the economy are still unclear.

More powerful storms and pricier building costs are behind the increases in premiums, said the report's authors.

The 35% levy on Canadian goods does not include any carve outs for lumber or building supplies, with their costs already rising, Cotality's Selma Hepp said.

President Donald Trump will sign an executive order on Thursday imposing new tariff rates on trading partners that take effect Friday, the White House said.