Tariffs are a hot topic in the news right now, and if you’re currently working on a home project, you may be worried about how global trade policies can affect your budget and timeline. Tariffs—taxes imposed on imported goods—can create a ripple effect that influences everything from the cost of construction materials to the availability of furniture and décor. Redesigning your home can be costly even in the best of times, so adding price uncertainty to the mix can make it a scary time to be working on a home project. If you’ve been wondering whether tariffs will impact your home renovation, read on for my thoughts and some helpful tips.
How Tariffs Can Affect Your Renovation Budget
While most people are talking about how tariffs can impact food, gas, and everyday essentials, if you’re in the midst of a remodel or you’re building a new home, you are probably thinking on a much bigger scale. Many construction materials, including lumber, steel, and even some textiles, are imported and subject to fluctuating tariffs.
For example, a significant portion of lumber used in the U.S. is sourced from Canada. So, when Canadian lumber prices rise, it drives up demand for U.S. lumber, and the basic principles of supply and demand cause those prices to increase as well. The same is true for the newest tariffs on steel and aluminum. Beams, roofing, and other metals used in residential construction are going to be more expensive whether they’re sourced from the U.S. or abroad.
Tariffs increase the costs for builders and contractors, which ultimately raises the price of home renovations and new construction. This can eat into your overall project budget, sometimes forcing you to make trade-offs when it comes to furniture, finishes, or design details.
Why Furniture Costs May Be Higher Than Expected
Beyond construction materials, tariffs can also impact furniture pricing, depending on where pieces are manufactured. Many furniture brands source materials or production from countries like China, Vietnam, and Mexico, all of which have seen tariff adjustments recently. When these imported products (which are typically, but not always, the lower end furnishings) become more expensive, it impacts prices and availability all the way up the supply chain.
Higher import costs can lead to increased retail prices, longer lead times, and limited availability of certain styles. This means you may need to stretch your budget or compromise on certain pieces. However, there are smart ways to navigate these challenges.
How a Designer Can Help You Source Smarter
Working with a designer can be a game-changer when it comes to managing costs and avoiding tariff-related price hikes. Designers have extensive networks and industry knowledge that allow us to source high-quality, U.S.-made furnishings and materials that may not be as vulnerable to tariff fluctuations. While domestic pieces sometimes come at a premium, they often offer superior craftsmanship, shorter lead times, and a reduced environmental footprint due to lower shipping distances.
Making the Most of Your Design Budget
Designers can also help you find creative solutions to offset rising costs, such as repurposing existing furniture, shopping vintage, or working with local artisans for custom-built pieces. These strategies not only help you stay within budget but also create a unique and personalized space.
If you’re already deep into your project, rising costs are totally frustrating—I get it! But with the right strategy, you can still achieve a stunning result without unexpected financial surprises.
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