By now, you’ve surely heard how the U.S. is planning and has placed extra tariffs on a number of goods imported from Canada, Mexico and China. The amount and timing, as well as what products the tariffs will impact, have been in flux. But for now, there is a 20% tariff on products from China and 25% on many goods from Canada and Mexico.
What is sure is that they will increase the cost of DIY projects and home renovations, says Pelin Pekgun, a researcher at Wake Forest University School of Business. “To be prepared against these rising costs, homeowners should plan ahead, compare prices and adjust budgets accordingly,” she says. “While prices will not rise immediately, higher material costs, potential shortages and supply delays could result in tighter renovation budgets in the coming months.”
Here is more about the products the tariffs will impact, especially those related to DIY, home improvement and other building endeavors.
Why Do Tariffs Cause Prices to Rise for Consumers?
When governments place tariffs, which are extra fees on goods imported from other countries, businesses often directly pass that cost on to consumers.
“Tariffs are like a hidden tax that families pay,” says George Carrillo, CEO of the Hispanic Construction Council. “Imagine your family is shopping for a new microwave. If tariffs are added, that $100 microwave might now cost $120. The extra $20 isn’t going to the store; it’s covering that fee the company had to pay just to bring the product into the country.”
Tariffs also raise prices indirectly. For example, a tariff on aluminum can affect the price of items made with aluminum, like cars, appliances and tools. And tariffs on fuel can increase prices on anything that is shipped or even just a local delivery of lumber to your home.
“It’s all part of a chain reaction,” says Carrillo. “When companies pay more for goods or parts, those increases trickle down into higher prices for everything from cereal to car repairs. For families, it’s a reminder that even distant policies can show up right in your shopping cart or monthly bills.”
What Products Will Be Impacted By the Tariffs?
Lumber
One of the most significant products the tariffs will impact is lumber. The pending 25% tariff on Canadian lumber is likely to raise the cost of wood products by 15% to 25%. That means the price of a sheet of plywood could jump from around $30 to around $50, says real estate investor Erik Wright.
“I was forced to submit three home remodeling budget revisions last month because of premature tariff notifications, which raised the price of lumber by nearly 20%,” says Wright. “A customer’s deck rebuild went from $6,400 to almost $8,000; a bitter increase for a family that simply needed to create safe outdoor areas for their children.”
Especially for repairs and maintenance that shouldn’t be postponed, consider shopping at local sawmills, switching to composite, eco-minded and U.S.-made materials like Trex and Acre, and reclaiming/reusing as much wood as possible.
Metals: Building and Tools
Canadian and Mexican aluminum and steel tariffs are slated for 10% to 25%, which will likely increase the cost of appliances, tools, plumbing and electrical components by 10% to 30%, says Wright. Both tariffs will likely also increase the cost of building materials like aluminum windows, doors, gutters, exterior trim, metal roofing and solar panels.
To help ease this, try repairing your old tools and getting creative with materials, such as switching to vinyl windows.
Auto Parts and Vehicles
With steel and aluminum tariffs going through the roof, the cost of new cars, work trucks and auto parts will also rise. “Automotive DIYers could also feel the sting, with the cost of imported brake pads potentially rising from $50 to $75 per set and imported power tools like drills increasing by 15 to 20%,” says Carrillo.
GC Josh Riutta says the higher cost of new vehicles will likely also raise the cost of hiring contractors “since we rely on our trucks for everything.”
To help mitigate this, if you’ve been considering purchasing a new vehicle, buy it sooner rather than later, stock up on frequently used parts ahead of time, or source reliable secondhand parts from salvage yards, says Carrillo.
Electricity and Gas
Energy bills may also climb, with a 5% to 10% increase possible if tariffs raise the cost of imported oil or gas, says Carrillo. Propane, however, likely won’t be affected much, as it’s primarily produced in the U.S.
In addition, tariffs can indirectly affect energy costs. For example, they can raise the cost of delivery. If tariffs on steel and aluminum drive up the cost of energy infrastructure, like transformers or pipelines, that could eventually filter down to your electricity and gas bills, says concrete specialist Bill Bencker. Plus, “if tariffs lead to trade disputes, it can disrupt energy markets, causing price volatility,” he says.
To help ease the costs, focus on energy efficiency in your home, like sealing windows, adding insulation and switching to a programmable thermostat.
Electronics
“Electronics are a big one,” says financial analyst Michael Schmied. “Mexico assembles so much of what we use every day [so a tariff will] push prices up on things like TVs, computers and even smart home devices.”
If you’re planning on upgrading your home security system or getting a new energy-efficient fridge, expect to pay more—maybe $100 to $300 extra per item, depending on the brand, he says. Also, a lot of our electronics, especially lithium batteries, come from China, so that tariff will likely raise prices on those items as well.
Textiles
People forget how much of our furniture and home goods come from China, says Schmied. “A 20% tariff means mattresses, bedding, curtains and couches will all get more expensive,” he adds. “You might see an $800 sofa jump to $950, or premium bedsheets go from $100 to $120. If you’re furnishing a whole house, that adds up fast.”
Appliances
Appliance will also likely jump between 10% and 25% with the new tariffs. “Manufactured goods are especially vulnerable to tariffs because, thanks to modern supply chains, they often cross the border multiple times during the assembly process,” says tiny home builder Jonathan Palley. “Even your American-made dishwashers, refrigerators or water heaters probably have at least some work done in other countries.”
If you need a new appliance, consider buying it now, before prices rise. Otherwise, think about looking for a used one, or repairing your old one.
Landscaping Materials
Lumber is used for many landscaping projects, like decks, fences and raised beds. Couple that with a rising cost of common landscaping tools and components made in China, like lawnmowers, light kits and sprinkler heads, and “I don’t see any other way except for us to pass on those costs to our customers,” says landscaper expert Todd Hendricks. “And if the tariffs persist, these increases might get to be quite substantial.”
Drywall and Concrete
More than 25% of cement and concrete are imported from Canada and Mexico, so the cost of pouring foundations and flatwork, such as driveways and walkways, will likely increase. Also, Mexico supplies more than 70% of American drywall. “A tariff on this material would translate directly to increased building costs, as this material is standard practice in today’s construction and doesn’t have a simple substitute,” says ADU builder Paul Dashevsky.
Other Building Materials
Many other building materials will likely get more expensive, including flooring, cabinets, countertops and lighting. “Regarding home essentials like imported tiles, for example, an imported tile backsplash could grow from $15 per square foot to $20, adding hundreds to renovation budgets,” says Carrillo. “However, buying domestic brands might sidestep those price increases entirely.”
HVAC
Many components of AC units are manufactured in Mexico before being shipped to the U.S. for final assembly and distribution, so they’ll get more expensive. “As an air conditioning contractor in south Florida, we have already been informed that our manufacturers and distributors are increasing their prices by 20% to 25% as a result of these tariffs,” says HVAC specialist Vanessa Ferrara. “Coupled with supply chain challenges, homeowners will see shortages in availability and severe price hikes.”
Repair will get more expensive, too, since many of the parts are imported, says general contractor Justin Cornforth. “Most people don’t even realize that many manufacturers describe themselves as ‘American manufacturers,’ but in reality, a significant portion of their components are either made in China or assembled in Mexico using Chinese parts.”
Labor, in General
Though not a direct consequence of tariffs, labor costs are also a growing concern in the construction industry, says roofer Michael Green.
“Many of my colleagues and industry peers are saying that immigration policy changes and deportations could lead to worker shortages and increased labor costs,” he says. “I also expect deployment timelines to stretch by two to three months as supply chains adjust and manufacturers rework new trade options.”
Insurance
Car, home and business policies are going up because materials and replacement costs are rising, says attorney John Beck. “I had a client who was rear-ended, and the body shop quoted nearly 30% more than the same repair would have cost last year because parts are more expensive due to tariffs on imported materials,” he says. “When prices go up, insurers adjust. Some providers are hiking rates across the board, assuming customers won’t push back.”
Tips for Homeowners
To prepare for and deal with the financial impact of the tariffs:
- Plan ahead by getting materials now and locking in contractor bids;
- Buy domestically sourced materials;
- Consider alternative materials, like composite decking instead of lumber;
- Invest in energy-efficient appliances and boost home insulation;
- Avoid large ones that could increase substantially in cost before they’re complete;
- Focus on fixing and maintaining what you have, such as tools and appliances;
- Look for refurbished, second-hand and recycled products;
- Stay informed about trade policies and changes to keep ahead of the curve;
- Buffer a bigger budget into projects to account for unexpected price increases;
- Don’t be afraid to negotiate prices;
- Look for discounts and seasonal sales, like spring promotions and
- Build relationships with local suppliers.
“Basically, it’s about being smart and adaptable,” says Bencker. “We’re all in this together, and by being prepared, we can weather the storm.”
Also, be wary of predatory players using tariffs as scare tactics to get you to sign contracts quickly, or artificially inflating prices and/or applying a sur charge for tariffs early, says kitchen distributor Michael Neal. “Many building supply houses have one to six months of inventory on hand, and international suppliers often have even longer lead times,” he says. “This means they likely have non-tariffed-increased products in stock currently.”
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