On Monday, September 24, the United States imposed a 10% tariff on all products manufactured in China. While this was not entirely unexpected, it still is a kick in the gut for many who are planning new home builds or remodeling projects. This 10% increase comes on top of tariffs of 20% on softwood lumber imports from Canada. (NAHB, September 18, 2018) In addition, new tariffs of an additional 25% for items from China could be in effect as early as January 1, 2019.
What does this mean for you?
Obviously, you will see a marked increase of all products coming from China, especially budget-friendly items such as lighting, mirrors, furniture, art, etc. In the short term, meaning in the next 30 days or so, some companies may absorb this 10% while they modify their pricing. But this won’t last for long. The 20-25% increases on lumber and products will not as easy to ignore.
If you have a project in progress or on hold, it will likely be necessary to revise pricing for items quoted that come under these tariffs. If you are planning an upcoming project, it would be wise to budget for an additional 25% in product costs, as well as raw materials. If the trade talks end in a resolution, you are at worst left with a little extra margin in your budget.
We do our best to make sure the products we select for you are of high quality and within your price point. We are proud to offer many outstanding lines of products manufactured in the United States and Canada both in our designer-direct lines and through our vendors.
Thank you for your flexibility as we re-quote and re-source your products. We will continue to monitor these increases and let you know any updates.