Why Homeowners Should Act Now: The Impact of Upcoming Tariffs on Renovation Costs

If you’re planning a home renovation in the near future, now might be the best time to purchase your materials. With new tariffs on imported goods set to take effect, experts predict that prices for building materials could rise significantly. Here’s what you need to know and how to prepare.

What Are the Tariffs?

Starting in February, a 25% tariff will be imposed on goods imported from Canada and Mexico. Since these countries are major suppliers of softwood lumber, a critical component in many renovation projects, this change is likely to impact material costs directly. Approximately 30% of the softwood lumber used in the U.S. is imported, with Canada being a primary supplier. These tariffs could lead to higher prices for essential items like framing lumber, plywood, and trim materials.

How Tariffs Impact Renovation Costs

Historically, similar tariffs have caused significant price increases. For example, previous tariffs on Canadian softwood lumber added nearly $9,000 to the cost of building a single-family home. While every project is different, the anticipated increase in material costs could make renovations more expensive across the board, from custom millwork to structural repairs.

Even “Made in the USA” Products Aren’t Immune

It’s important to understand that even products labeled “Made in the USA” may not be immune to price increases. “Made in the USA” doesn’t necessarily mean “Made with Materials Grown in the USA.” Many American manufacturers rely on imported materials to produce their goods, and tariffs on these imports could lead to higher production costs. Even a manufacturer working with American-grown materials may still be affected if they use tools or equipment produced in countries like China, where tariffs or other trade restrictions could increase costs. Additionally, manufacturers may raise prices to offset other increased costs associated with the tariffs, such as transportation or operational expenses. This means that the impact of the tariffs could extend beyond imported goods to domestically produced products as well.

Why Act Now?

  • Avoid Price Hikes: Material costs are expected to rise as suppliers adjust to the new tariffs. Buying now could help you lock in current prices before the increases take effect.
  • Secure Availability: Supply chain disruptions often accompany price hikes, as demand for materials purchased at pre-tariff prices surges. Purchasing now ensures that you’ll have the materials you need when you need them.
  • Stay Within Budget: If you’ve already budgeted for your project, buying materials in advance can help you avoid unforeseen cost overruns due to price increases.

Practical Steps for Homeowners

  1. Plan Ahead: Finalize your renovation plans as soon as possible so you can determine what materials you’ll need.
  2. Work with Your Contractor: If you’re hiring a contractor, discuss your timeline and consider purchasing materials together now to avoid future price spikes.
  3. Consider Storage Options: If you’re buying materials in advance, ensure you have a safe and dry place to store them until your project begins.

The Bottom Line

While the upcoming tariffs are expected to affect material costs, homeowners can take steps to mitigate these impacts by acting now. Whether you’re planning a minor upgrade or a major renovation, buying materials in advance could save you money and keep your project on track.

If you’re unsure where to start, consult with a contractor or visit your local home improvement store to discuss your options. By preparing ahead of time, you can navigate these changes confidently and keep your renovation plans moving forward.