NEW YORK (AP) — U.S. cabinet dealers, interior designers and remodeling contractors are hoping new tariffs on imported kitchen cabinets, vanity tables and upholstered wooden furniture, which began on Tuesday, will generate more business for them and ultimately increase domestic production of these products.
But several small business owners in the home improvement industry say they expect some short-term pain from import taxes: Clients whose projects are already registered may refuse the need pay more for the inexpensive cabinets they chose. Potential clients may put off kitchen and bathroom renovations until the costs come up. economy – seem more stable.
“I think price volatility is hurting the remodeling industry,” said Allison Harlow, a Michigan-based interior designer whose company Curio Design Studio designs and builds custom bathrooms and kitchens. “Most people will hear the headline, 'Kitchen cabinets will rise 50% in price,' and may simply not even consider contacting our company.”
Despite the high mortgage rates having depressed sales existing homes in recent years, a forecast of remodeling activity from Harvard University's Joint Center for Housing Studies predicts that homeowner spending on improvements and maintenance will remain stable through mid-2026.
Trump called cheap imports a threat to national security
The proclamation, which President Donald Trump signed on September 29, addresses national security and foreign trade practice as a basis for imposition tariffs for certain finished wood products and their components.
Of these, imported vanities and kitchen cabinets attract the highest tax rates: 25% until the end of the year and 50% starting in the New Year.
Upholstered chairs, seats and sofas are also subject to a worldwide tariff of 25% from Tuesday, with the rate set to rise to 30% from 1 January. In addition, the presidential proclamation imposed a 10% import tax on softwood timber and lumber, which is produced from evergreen trees such as pine and cedar trees.
Softwoods are often used for furniture and timber frames. Canada is the source of about 85% of the softwood lumber imported by the U.S., or nearly a quarter of the nation's supply, according to the National Association of Home Builders.
Some U.S. trading partners are receiving more favorable treatment when it comes to tariffs on furniture and cabinetry. The tax on exports from the UK was capped at 10%, while the rate for timber from the European Union and Japan was limited to 15%.
The American Kitchen Cabinet Alliance and other trade and advocacy groups have lobbied for tariffs to help offset what they called a flood of cheap cabinets from countries such as Vietnam, Malaysia, China and other countries for decades, as more U.S. furniture makers moved overseas.
Products made in the USA tend to cost more, but are often of better quality.
Higher profits for restorers on a budget
John Lovallo, analyst at UBS: evaluates tariffs imported cabinets and vanities can add about $280 to the average cost of building a single-family home, not enough to sink a project whose total cost is often more than 1,000 times that amount.
Some business owners say they plan to cover any costs associated with the tariffs for now, rather than raising prices for customers.
John Dean, founder of Dean Cabinetry in Connecticut, sells a variety of cabinets, from inexpensive imports to custom designs made in his shop. Imported products make up about a third of his sales, but Dean said he doesn't expect much impact from the tariffs.
Two of his suppliers from whom he buys imported cabinets, in China and Vietnam, said they would raise prices by 10% to offset some of the tariff costs.
Dean said he won't charge customers more for now. Because kitchen remodels are expensive to begin with and construction lumber and labor costs are rising, higher cabinet prices could hurt demand, he said.
“My personal view is that most SMEs are struggling to cover these costs,” he said.
Timber tariffs are likely to have a greater impact on choice than on prices as importers cut back their orders to focus on best-sellers and the highest-margin products, according to Jason Miller, a professor of supply chain management at Michigan State University.
“This will force importers to be more selective about the varieties they import,” Miller said. “So I think there will be a bigger impact on the product variety side: consumers should expect less variety.”
What Cabinet Companies Expect
Although the White House has said the tariffs are intended to stimulate domestic production and protect American businesses from predatory trade practicessome cabinetmakers say this will be difficult because their supply chains are multinational.
Linq Kitchen, a Los Angeles-based company that designs, manufactures and installs contemporary-style kitchen cabinets, uses plywood and melamine panels from Asia and Europe in its designs, according to co-founder Josh Qian. There is no suitable domestic alternative, he said.
“The kitchen cabinet industry is highly globalized, and even American manufacturers rely on imported materials, hardware and finishes,” Qian said. “These tariffs may seem protective, but in reality they often increase costs throughout the supply chain.”
At the same time, cabinet furniture manufacturers who do not sell foreign products and do not rely on imported components are hoping to expand their business. One is ACO Denver Custom Cabinetry in Denver, Colorado, which taps Amish, Mennonite and New German Baptist stores in the Midwest to build custom cabinets.
Andrea Mulkey, the company's president and co-founder, said her biggest concern is whether interest in American-made cabinets will grow too quickly.
“It's hard to predict how much new business might come our way because it will impact competitors,” Mulkey said. “We simply won't be able to serve everyone if demand suddenly increases. The real problem is similar to what we saw after COVID, when everyone was immediately busy and access to raw materials became limited.”
Design studio Curio makes custom cabinets in Minnesota and Wisconsin, but Harlow worries about the tariffs that cost her clients.
“I think it will reduce consumer confidence and make it seem like the job will be more expensive,” Harlow said. “I think we will have to work harder to attract potential customers by communicating that this general statement, 'Kitchen cabinets will go up 50% in price,' will not impact our specific business model.”
