While President Donald Trump loves to talk a tough game, even he must have realized the imprudence of pulling too many levers at once. Earlier this week, the White House implemented long-threatened tariffs on key economic partners Canada, Mexico and China. However, the move prompted serious backlash, causing the administration to delay some of the levies. In turn, homebuilder DR Horton (DHI) looks much more intriguing.
At first glance, DHI stock might not seem directly related to the high-level drama in Washington. But as Quiver Quantitative pointed out recently, both mortgage rates and tariffs have weighed heavily on U.S. construction in January. In particular, multi-family housing units experienced the most significant spending decline — and that naturally represents a serious headwind for the homebuilding industry. It’s no surprise, then, that as Trump tariff talks accelerated, DHI began looking shaky.
