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Ballestas Group

Housing Market Crash and Rising Tariffs: Economic Impact on U.S. and China

Existing home sales in the U.S. fell 4.3% month-over-month in March as mortgage rates rose to 7.1%. Also, new residential construction plunged 14.7% from the previous month, the biggest drop since April 2020.

This week the tariff war returned, U.S. President Joe Biden proposed new tariffs on China, aimed at increasing production and employment in the steel sector within the United States. If implemented, the United States will increase tariffs from 7.5% to 25% on certain Chinese steel and aluminum products. Following the announcement, China retaliated and implemented a 43.5% tariff on U.S. imports of propionic acid, a chemical widely used in animal feed (to prevent mold), pesticides, herbicides and drug development.



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