How the New Tariffs Could Affect Your Remodel

Global tariffs mean local headache.

Remodeling costs are about to go up thanks to the new tariffs on Chinese imports.

With the new tariff plan, goods imported from China will be taxed at 10%, but could go up to 25% by the end of the year according to the National Association of Homebuilders. What goods, you ask? Flooring, cement, tile, cabinets, doors, roofing, lighting, and a whole lot more — a good chunk of your remodeling materials.

To give you an idea of the scope, The Chicago Tribune says, “New estimates from the National Association of Home Builders indicate that of the 6,000 items on the list of goods imported from China that are now subject to tariffs, 463 are “ubiquitous” in home construction and remodeling.”

It doesn’t stop there. Steel and aluminum tariffs are also increasing. This could mean you’ll be shoveling out even more for your appliances, too.

In the article from The Chicago Tribune, they warn that these new tariffs “have the potential to increase costs to the consumer by anywhere from 5 to 10 percent or more, depending upon what the client selects.”

But it doesn’t necessarily mean that you have to spend more money on your remodel. The construction industry has come up with ways to anticipate the cost increases. According to The Washington Post, they might have a contingency plan in your bid. If a certain material chosen “in the original job by the client has the potential to become much more expensive — or difficult to obtain — the contract might contain language that allows a shift to alternative sources that are not subject to tariffs.”

This could save you money, but it might mean you have to compromise on certain finishes, appliances, and/or materials.

But there is some good news. If a business has inventory on hand pre-tariff, you’ll get to pay the pre-tariff price. Once they get new inventory, and you order it — get ready to pay up.

So, if you’re thinking of remodeling your home, it’s better to get started now rather than later before the trade wars find their loser — your wallet.

To learn how to save on your remodel in other ways, read more here!