Trump Is Set To Visit L.A. Wildfire Disaster Zones—but His Tariff and Deportation Agenda Could Send Rebuilding Costs Soaring

President Donald Trump is set to visit the areas around Los Angeles destroyed by wildfires, even as some question whether his signature policies on tariffs and immigration could hamper the rebuilding effort.

The Republican’s visit to deep-blue California in the wake of the disaster sets the stage for possible political tension—but also offers up the chance for bipartisan cooperation on the monumental task of rebuilding.

At least 16,600 properties were inside the perimeters of the massive Eaton and Palisades fires, with a total reconstruction cost of $13.1 billion, according to estimates from CoreLogic.

Total insured losses, including personal property, rental reimbursement, and business interruption, could reach as high as $45 billion, CoreLogic says. At least 28 people were killed in the fires.

Trump, who first gained fame as a real estate mogul, has vowed to help lead the effort to rebuild—a project that could take up to a decade to complete. 

“I’m going to go out there on Friday to see it and to get it moving back,” Trump said at a rally ahead of the inauguration. “We’re going to get some of the best builders in the world. We’ll get it moving back.”

Will Trump’s policies help or hurt the rebuilding effort?

Despite Trump’s vow to spur the rebuilding process in Los Angeles, housing industry experts have raised alarm bells that if Trump follows through on his promises of mass deportations and stiff new tariffs, construction costs could skyrocket.

“The tariff and deportation agenda the Trump administration has promised will certainly raise construction costs during a moment of great need for new homes—not only to replace the properties destroyed by these horrible wildfires in Southern California, but in the country at large where underbuilding has plagued for-sale inventory since the Great Recession,” says Realtor.com Senior Economist Joel Berner.

Nearly 10% of building materials used in residential construction are imported, according to the National Association of Home Builders. Industry experts say dimensional lumber from Canada probably accounts for the bulk of those imports, followed by fixtures and finishes from a variety of nations.

“The cost of tariffs on construction materials will be passed along to builders and eventually to homeowners and buyers, driving up the price of rebuilding in Southern California and new construction nationwide,” says Berner.

So far, Trump has not imposed new tariffs on imports, instead requesting that key agencies conduct a 90-day review of U.S. trade policies.

Meanwhile, mass deportations of unauthorized immigrants—another Trump campaign promise, could raise labor costs in the construction industry, which is especially reliant on undocumented workers. 

“Mass deportation will remove a significant portion of the construction labor force, causing builders to play catchup when it comes to training new employees and resulting in increased labor costs which will again be passed onto American households,” says Berner.

“The best thing for the Trump administration to do in support of residential construction is to drop tariffs and deportation from the agenda,” he adds. 

Berner also called on Trump to coordinate with state and local governments to ensure speedy delivery of new homes, incentivizing them to remove regulatory red tape where necessary.  

“Beyond that, holding insurance companies accountable for paying out the appropriate amounts to homeowners on their wildfire claims promptly will promote equity and speed of the rebuilding efforts,” he says.

California Democrats welcome Trump’s visit

California Gov. Gavin Newsom, a Democrat with his own presidential ambitions, issued a statement welcoming Trump’s visit to the disaster area. 

“We are glad to see president-elect Trump accept the governor’s invitation to come to Los Angeles,” a spokesperson for Newsom said.

“The governor hopes the president-elect meets directly with the Americans affected by these firestorms, sees the devastation firsthand, and joins the governor and others in thanking the heroic firefighters and first responders who are putting their lives on the line,” the statement added.

Los Angeles Mayor Karen Bass told reporters at a press briefing that she hoped to meet with Trump during his visit, despite the president’s harsh criticism of emergency response efforts that failed to quickly contain the blazes.

“I’ll say, ‘Welcome to Los Angeles,’ and it’s—immediately go into what we’re facing right now, and how we hope to continue the federal partnership, which we already have,” said Bass. “It is my hope that he will be very supportive.” 

During his inaugural address, Trump lashed out at California’s response to the blazes, which spread rapidly due to extreme drought and high wind conditions, claiming the fires were allowed to spread “without even a token of defense.”

“They’re raging through the houses and communities, even affecting some of the wealthiest and most powerful individuals in our country—some of whom are sitting here right now,” said Trump. “They don’t have a home any longer. That’s interesting.”

Fire officials in California have said that the speed of the fires overwhelmed their defenses, with the Palisades Fire growing to 20 acres in less than half an hour, driven by hurricane-strength wind gusts.