President Donald Trump’s recent decision to pause sweeping tariffs offered a brief sigh of relief to Wall Street, sending the S&P 500 to its largest single-day gain since 2008. But in Massachusetts, the economic turbulence caused by tariff talks is still rattling the housing and construction industries.

The temporary reprieve came after a week of market volatility, spurred by Trump’s April 2 declaration of “Liberation Day” and his administration’s announcement of broad tariffs targeting foreign imports. While the pause has calmed investor nerves in the short term, the ripple effects of the trade policy uncertainty are making waves in local real estate and construction markets.

“Speaking to just a lender yesterday, 80% of his business has put a pause on buying real estate right now, because their down payments are not liquid,” said Kristin Hilberg of Keller Williams Realty Boston Northwest. “They're in the stock market, they were counting on dividends or counting on 401ks.”

For many prospective homebuyers, the hit to their retirement accounts and investment portfolios has placed dreams of homeownership on hold. In some cases, buyers are rethinking their financial positions entirely, stalling previously scheduled purchases and reducing overall market activity.

Contractors are also grappling with major uncertainties. Trump’s plan imposes a 10% tariff on imports from countries that refrain from retaliating, while goods from nations that do — including China — will face a staggering 125% tariff.

“What it really affects us is trying to sign up new work,” said John Anderson with Plumb House Inc. “Investors are very uncertain right now, and they're unwilling to actually sign contracts to move projects forward, because they don't know what it’s going to cost them.”

Many general contractors had prepared for the tariff impact by stockpiling materials, but even proactive strategies haven’t eliminated broader concerns. Tariff volatility has created unpredictable pricing environments, making it difficult for developers to budget, bid, and finalize deals.

The uncertainty is also contributing to shifting buyer behavior. “Tariff, chaos, affecting the stock market, until we see how that levels off — if people are going to panic buy, then pull back — and then hopefully we're going to get back to some sort of a normalcy,” Hilberg said.

Though the 90-day pause may provide a temporary window of calm, experts warn that without clarity on long-term trade policy, the region’s construction and housing markets could remain in limbo. For now, developers, lenders, and buyers are holding their breath and waiting for greater stability.

Originally reported by Darren Botelho in NBC Boston.