Tariffs. As remodelers, we are used to playing many roles and taking on various tasks (including the occasional marriage counseling session…) while we work with clients. Understanding the intricacies of international trade and complex supply chain networks was not something we were expecting to add to the list. But here we are. Or not? As this is being written there has been a pause placed on most of these tariffs. Will it hold or change? We don’t know. We do know that clients are going to have questions. We had better start working on answers.
Something that seems like a simple question has proven to be very complicated. Where is something made? All of the cabinet manufacturers we work with produce their products in the US. No tariff exposure right? Maybe. These manufacturers source their materials domestically- they buy wood products, hardware, adhesives and finish products from sources in this country. But where do those vendors get these materials? Our best guess is that most of it comes from the US but some portion of it is imported. Exactly what and from where remains a mystery to us. Give us some time! We are still new at this international trade thing.
The biggest question in all of this is what is the impact of tariffs on the cost of a project? Imports from various countries can have tariffs of 20%, 25% and now even over 100%. Will a remodeling project’s cost increase by a huge percentage as a result of these tariffs? Like everything else in 2025–it’s complicated. But the short answer is no. Materials are just one component of a remodeling project. Other components like labor, permits, deliveries, design, etc. are not subject to tariffs. In an effort to determine the impact on cost that tariffs could have, let’s look at a “typical” kitchen project. We have made lots of assumptions in these numbers, but we hope it illustrates the concept.
In this scenario, a non-tariffed project would cost $116,767.82. Here’s the assumption part- we have projected that 20% of the materials used will have been imported from somewhere and are subject to tariffs. We have set that tariff rate at 25%. This has added $1,745.44 to the price of this project. Further, we have projected that 15% of trade work (plumbing, electrical, and HVAC) will be materials that are subject to tariffs. We have assumed that some percentage of wire/cable, plumbing pipes/fittings, and metal used in fabricating HVAC ductwork is sourced from outside the US. This results in an additional cost of $1,447.77. Our total for tariffs is $3,193.22 or an increase of 2.73% to the original project cost. $3,200 is a lot of money, but it is not a 20% increase.
We also looked at a Scenario B. This time we projected that 25% of materials would be subject to a 30% tariff. We also raised the percentage of trade work materials subject to tariffs to 20% but left the tariff rate at 25%. Using these numbers, the cost of the project went up $4,548.53. This is an increase of 3.90%.
An important caveat in both of these scenarios– appliances are not included in either of these budgets. Kitchen appliances are manufactured across the globe including brands produced in the US, Korea, China and Europe. Again, we are trying to get up to speed on the specifics, but we expect to see significant tariffs applied to appliances manufactured in China.
Tariffs will raise the cost of remodeling projects. The announcement of a pause brings us hope that project pricing will remain stable. Regardless, we will continue to do everything we can to help our clients make good decisions about their home. We’ll keep asking questions, monitoring changes, and doing our best to bring clarity to a complicated issue—so you can focus on the excitement of transforming your home, not the fine print of international trade policy.
