Hausing planned? Tariffs could soon increase the costs

Hausing planned? Tariffs could soon increase the costs

The costs for Chad Esslinger, who runs an interior design business outside of Chicago, have been increasing since the first comprehensive global customs increases that President Donald Trump announced in early April. A business that Esslingen often uses to provide luminaires, carpets, furniture and a variety of household goods in large quantities for its customers, introduced a "temporary customs surcharge" of 14 % to all goods from China and 2 % on products from other countries on May 12th.

price increases due to customs policy

Another company that offers fabrics, wallpaper and decorative strips informed Esslinger that it would re -evaluate its price strategy on May 15. "It happens that you don't even warn you. I have visited a website to look at a product that I may have spotted a month ago, and now suddenly it is a certain percentage," said Esslinger. "As with everything, you have to pass on these costs if you want to remain profitable," he added.

Influence of the tariffs on the renovation industry

In recent years, the market for living renovations is booming, but the constantly changing customs guidelines in Washington are threatening to change this. The USA imported were worth several billion dollars from all over the world, from Tuscan tiles to Chinese refrigerators. These products and raw construction materials were severely affected by Trump's customs agenda.

experts from the renovation industry, from decorators to general entrepreneurs, reported that their companies have been prepared for rising prizes in April since the first announcement of the tariffs by President Trump. Although Trump temporarily put many of the greatest increases in the dashes on ice, the high tariffs remain and the uncertainty about future costs remains.

unpredictability of tariff policy

Some household goods have already been completely removed from the market due to abrupt modified tariffs. Sandy Schargel, an interior designer from Albuquerque, New Mexico, recently learned that the lights ordered for a customer were no longer available, due to the leakage products caused by tariffs. When it was notified, the alternative options from the same manufacturer had risen by 10 % in the price.

spicy gel told CNN that if it can no longer access some imported products, it would use American alternatives, which could cause additional costs for homeowners. "The selection of American products is limited to the cheaper price points," said Schargel. "Imported goods often offer cheaper options." She encouraged her customers with smaller budgets to order as soon as possible to avoid price increases in the future.

The effects of trade with China

China is one of the largest exporters of household goods to the USA. In 2024, the country exported the value of over $ 438 billion to American households. Almost 19 % of this total amount accounted for machines and mechanical devices, including refrigerators, dishwasher and washing machines. Furniture, bedding and lighting made up another 4 % of the imports from China last year.

For a little more than a month, the customs of 145 % to imports from Trump to imports from China far exceeds the tariffs to imports from other countries. On Monday, however, the United States and China agreed to lower the tariffs - a positive step in the trade relationships between the two countries after the tensions had increased in the past few weeks. For at least 90 days, the majority of the imports from China are taxed with 30 %.

uncertainty about future price developments

Although general 10 % tariffs remain with most other United States trading partners, higher sentences could come into force again on July 9. It is still too early to estimate whether the break at the highest tariffs for China will reverse the price increases and bottlenecks. Esslinger explained that no household importer he has worked so far has announced that he would like to reduce prices.

industry in upheaval

A previous study by the National Association of Home Builders estimated that the renovation industry is on growth course due to an aging residential stock. Since fewer and fewer new houses have been built in the past ten years and fewer Americans are moving, it is more likely that homeowners will renovate their older houses. Nevertheless, Esslinger and other experts reported that the uncertainty due to the customs changes slowed down the business.

"The word that keeps appearing is uncertainty," said Esslinger. "I think some people just don't feel really safe. Some of my customers said that they want to wait and see how the situation develops while others have driven a little." However, not everyone in the renovation area has so far had to feel the full influence of the tariffs. Nina Sepiashvily, who headed I&N Builders, a construction company in New York City, found that although she noticed a slight increase in prices, it is low compared to the rapid prices of the years after the start of pandemic when inflation is low.

Although the USA imports a significant percentage of road wood from Canada, the additional increase in the import of this import has not yet been effective. The current customs on timber is 14.5 %, but the US Ministry of Trade has announced that the tariffs on Canadian timber could increase to over 34.5 % in the coming months.

"We have not really seen the tariffs influence our costs," said Sepiashvily. But while customers are still interested in planning renovations, many are not yet willing to take the next step. Homeowners are "unsure about tariffs, unsure about their investments and are afraid of taking the step."