The developer behind a new mixed-use property in Chicago has decided to scale the project back by nearly 80 percent in response to tariffs imposed by President Donald Trump. 

The sized-down Chicago development reflects concerns from economists that Trump's tariffs could slow the construction of new residential and commercial buildings, exacerbating the already-existing problem of too few homes being built. Trump announced tariffs on steel and aluminum imports from Canada and Mexico last week, while his larger, blanket tariffs on the two countries remain on pause.

Ryan Monarch, assistant professor of economics, says that it is “clear” tariffs on products like steel and aluminum will increase the cost of building housing and developments and, therefore, drive up the prices of housing in the U.S.

It will raise costs for things like nails, typically made of steel, affecting not just new constructions but also renovations on already-existing buildings, Monarch says, noting this could have an impact on prices for renters, as well.

“Any kind of improvement that homeowners want to make is also going to become more expensive. Think about some of the recovery from natural disasters in California or North Carolina. The costs of disaster recovery are also going to be higher,” he says.

Read more in the Newsweek article, “Chicago Housing Development Shrinks Itself by 80% in Face of Trump Tariffs.”