What even is this math? Its wrong, is all I can say. If new home construction depends on roughly 7% of foreign materials, at 30% tariffs you would see an overall increase of 2.1% to construct a new home. It doesnt seem like a lot but it will happen more or less overnight once old inventory is sold/used, and will be exacerbated by naturally occurring inflation and by builders adjusting their margins accordingly, meaning consumers will pay slightly more than the 2.1% increase in the final price of the homes. This leads to A: overall comp prices of homes, including older homes already built, to go up in price, NOT just the 1% of new builds. And B: fewer homes being built, meaning fewer rental homes, meaning increases in rental prices. And this is just ONE facet of the impact of broad tariffs increases. Rent will go up, general goods will go up, pretty much all expenses will increase as a result. I cant say exactly how much inflation we will experience, but what I can do is point out inaccurate figures. This will impact more than 30% of the economy, it will be in addition to normal inflation. I would be shocked if we see 5% or less overall inflation yoy from today to this time next year. 7-8% seems reasonable, but only time will tell. Inflation has been creeping up even before tariffs were implemented so 3% seems incredibly unlikely unless the tariffs somehow coincide with an otherwise deflationary period independent the tariffs.