The Trump trade policy may result in new tariffs that increase the cost of home renovations in the US. Unless manufacturers make their products in the United States, the plan would impose a 50% tariff on kitchen cabinets and bathroom vanity units, a 30% tariff on upholstery, and a 100% tariff on some patented pharmaceutical products.
supporters claim that this benefits the manufacturing sector, but opponents warn that it may increase inflation and cause delivery delays, which could have an impact on the pharmaceutical sector. Maggie Kulyk, CEO of Chicory Wealth, explained to USA Today that many households are already feeling trapped by high interest rates and housing costs, so higher remodel prices could be particularly painful.
What’s going to get more expensive
Tariffs are additional charges imposed on imports. And in response to rising import costs, retailers frequently have to increase stock prices. In this case:
- Bathroom vanities and kitchen cabinets: +50%
- Furniture with upholstery: +30%
- Up to 100% for some patented medications (unless made in the United States)
This is important for home remodeling projects that need furniture, cabinets, and plumbing. Global supply chains can become slower and more expensive even if some components are produced locally. Economists are concerned that this might increase inflation and discourage investment.
The manufacturing sector promises protection, but critics argue that consumers ultimately pay the cost, particularly in the short run. Higher tariffs could result in higher drug prices for the pharmaceutical industry if businesses choose not to produce in the US.
What experts and families are saying
According to Kulyk: “People haven’t been able to trade over or up in housing for so many reasons. Wages have not kept pace with the inflation of the housing market. Then interest rates rose. So you’ve got people who are quite literally stuck in place. And now they want kitchen cabinets. Well, they’re going to pay more and they might not get them for a long time.”
She also warns that, “We’re living in a very dangerous situation, both politically and macroeconomically…. I do think that when the rubber hits the road and some of the folks who are only making $200,000 a year realise they thought they had a seat at the table, but now they’re on the menu, then we’re going to see significantly more social unrest, potentially.”
There may be more legal tests because similar measures have already been fought in court before.
Another reason why home renovation projects may become more expensive or take longer under the Trump trade policy is that companies might stop or rearrange orders while they work out exemptions and deadlines.
How to prepare if you were thinking of remodeling your house
- Establish a reasonable spending plan that allows for flexibility. Assume that under the new tariffs, furniture, vanities, and cabinets may cost more.
- Check out your local options. Local suppliers might reduce delays or price increases if domestic production grows in the US.
- Put the necessities first: safety, electrical problems, and leaks. If money is tight, put off aesthetic upgrades.
- Make a timeline. Anticipate longer lead times; confirm delivery windows and place early orders.
Trump’s trade policy is intended to stimulate the manufacturing sector, but it may also increase the cost of home renovations and put more pressure on inflation in the short run. Families that already suffer by housing and rates may quickly feel the effects of these changes, even on pharmaceuticals, as noted by USA Today and Maggie Kulyk of Chicory Wealth. Budgeting, sourcing, and timing are all areas where smart planning can help households grow without going over budget.
In the middle of uncertainty, businesses are attempting to manage imports and exports. And the lack of clarity around it may cause additional market problems both inside and outside U.S.