Trump tariffs could raise price of rebuilding for Eaton, Palisades fire victims

LOS ANGELES - Thousands of Los Angeles County residents will soon be looking to rebuild after losing their homes and businesses in the Palisades and Eaton Fires. But, with tariffs against major suppliers of building supplies looming, experts are warning the cost could be going up significantly.

California wildfires destroy thousands of homes, 

The backstory:

More than a half dozen wildfires across Southern California in January burned nearly 40,000 acres and destroyed more than 16,000 structures. 

Most of that damage was in the Palisades Fire in Pacific Palisades and Malibu, and the Eaton Fire in Pasadena and Altadena. Crews are still working to clean out toxic debris left behind. But soon, those people will look to rebuild. 

SUGGESTED: How Trump's tariffs will impact lumber prices and the housing market

Experts tell FOX 11 that the combination of demand and tariffs on imports from Canada, China and Mexico could increase the cost of building materials significantly. 

On Thursday, Trump announced that he would be suspending tariffs on imports from Mexico and some from Canada until April. 

A repeat of the pandemic?

What they're saying:

Anawalt Lumber has been in the lumber business for more than 100 years. Reiff Anawalt says he's already gotten questions about building costs, and says it may be similar to what the industry saw during the COVID-19 pandemic.

"Now I think we'll see the same thing in Southern California, between the Eaton Fire and Palisades Fire, demand is going to be very high, and about a year and a half, maybe even six months to a year and a half, and then we're going to have the tariffs," said Anawalt. "So you're going to kind of have a double whammy."

The demand is one thing, but Trump's proposed tariffs are aimed at countries that supply many building materials.

"Mexico is our drywall. Canada's our wood. Electronics and metal [are] coming from China," said Shelby Rothman with Enjoy Financial. "So there is not one thing that we produce mass here in America that's going to be going into those homes that are being rebuilt, except for our labor."

So just how much could prices rise? 

"People projecting numbers and the current-day price really need to, I think, shoot for 25% higher, at least, with labor and material costs going up," Anawalt said.

The other side:

When Trump toured the Palisades Fire burn scar in January, he suggested he might freeze the cost of building supplies for three years for people affected by the fires, but so far he hasn't shared any other information on when or if that would happen.