NEW YORK (AP) — U.S. cabinet dealers, interior designers and remodeling contractors are hopeful. new tariffs The sale of imported kitchen cabinets, vanities and upholstered wooden furniture that began on Tuesday will generate more business for them and ultimately increase domestic production of those products.
But several small business owners in the home improvement industry say they expect some short-term pain. import tax: Clients with projects already in the planning stages may be hesitant to have to do so. pay more Into the affordable cabinetry of their choice. Potential customers may put off renovating their kitchen or bathroom until it costs more. economy — seems more stable.
“I think the price fluctuations are hurting the remodeling industry,” said Allison Harlow, an interior designer in Michigan. His company, Curio Design Studio, creates and builds custom bathrooms and kitchens. “Most people may hear the headline ‘Kitchen cabinets go up in price by 50%’ and refuse to even contact us.”
Despite being expensive mortgage interest rate have Poor sales Homeowner spending on improvements and maintenance is projected to remain stable through mid-2026, according to projections for home improvement activity by the Harvard University Joint Housing Research Center.
President Trump says cheap imports are a national security threat
The proclamation signed by President Donald Trump on September 29th calls for national security and trade The practices that form the basis for imposing tariffs on certain finished wood products and product components.
Of these, imported bathroom vanities and kitchen cabinets are subject to the highest tax rate of 25% until the end of the year and 50% from New Year’s Day.
Upholstered chairs, seats and sofas will also be subject to a 25% tariff worldwide from Tuesday, with the rate set to rise to 30% on January 1st. Additionally, the presidential proclamation imposed a 10% import tax on lumber from softwood lumber and evergreen trees such as pine and cedar.
Coniferous trees are often used in the manufacture of furniture and in the construction of wooden frames. According to the National Association of Home Builders, Canada supplies about 85% of the softwood lumber imported by the United States, or nearly a quarter of the country’s supply.
Some U.S. trading partners receive more preferential treatment when it comes to tariffs on furniture and furnishings. The tax rate on UK exports was capped at 10%, while the rate on wood products from the European Union and the European Union was 10%. Japan The upper limit was 15%.
The American Kitchen Cabinet Alliance and other trade and advocacy groups campaigned for tariffs to offset a flood of cheap cabinetry from countries like Vietnam, Malaysia and China in the decades since more and more U.S. furniture manufacturing has moved overseas.
Products made in the United States tend to be more expensive, but are often of better quality.
Increase profits for renovation contractors while staying within budget
John Robalo, an analyst at UBS Bank, said: Estimate the price Imported cabinets and vanities can add about $280 to the average construction cost of a single-family home, but that’s not enough to sink a project whose overall price is often more than 1,000 times more expensive.
Some business owners say they intend to cover tariff-related costs for now rather than raising prices for customers.
John Dean, founder of Dean Cabinetry in Connecticut, sells everything from low-cost imports to custom models made in his shop. Mr. Dean said that although imports account for about a third of sales, he did not expect the impact of the tariffs to be significant.
The two companies he buys imported cabinets from, from China and Vietnam, said they would raise prices by 10% to recoup some of the customs costs.
Dean said he does not plan to charge customers any additional fees at this time. He said raising the price of cabinets could hurt demand because kitchen remodeling is a big-ticket item to begin with, and construction lumber and labor costs are rising.
“My personal view is that most small businesses are trying to absorb these costs,” he said.
Tariffs on wood products are likely to have a bigger impact on selection than price, as importers scale back orders to focus on best-selling and highest-margin products, said Jason Miller, a supply chain management professor at Michigan State University.
“Importers are going to be more selective about the varieties they bring in, so I think the bigger impact will be on the variety side of the product. Consumers should expect fewer varieties,” Miller said.
What cabinet companies expect
The White House has said the tariffs are aimed at expanding domestic production and protecting U.S. businesses from risks. predatory trade practicessome furniture manufacturers say that’s difficult because the supply chain is multinational.
Linq Kitchen, a company that designs, builds and installs modern-style kitchen cabinets in the Los Angeles area, uses plywood and melamine panels from Asia and Europe in its projects, said co-founder Josh Cheng. There are no suitable domestic alternatives, he said.
“The kitchen cabinet industry is highly globalized, with even U.S.-based manufacturers relying on imported materials, hardware and finishes,” Qian said. “While these tariffs may sound protective, they often actually increase costs across the supply chain.”
At the same time, cabinet companies that do not sell foreign products or rely on imported parts look forward to gaining more business. One is ACO Denver Custom Cabinetry in Denver, Colorado. The company relies on Amish, Mennonite, and New German Baptist shops in the Midwest to handcraft custom cabinets.
Andrea Mulkey, the company’s president and co-founder, said her main concern is that interest in American-made cabinets will grow too quickly.
“It’s difficult to predict how much new business we’ll generate because our competitors are also affected,” Mulkey said. “If demand suddenly spikes, you can’t serve everyone. The real challenge is similar to what we’ve seen post-coronavirus, where everyone is busy at once and access to raw materials is tight.”
Curio Design Studio manufactures custom cabinets in Minnesota and Wisconsin, but Harlow is concerned about the tariffs that will be imposed on her customers.
“I think it reduces consumer confidence and creates a narrative that jobs are inherently more expensive,” Harlow said. “I think we need to do more to attract potential customers by conveying the message that a blanket statement of ‘Kitchen cabinets go up in price by 50%’ won’t impact our particular business model.”
