Six Strategies to “Tariff-Proof” Your Home Renovation Project
If you’re like most people, you’re getting a crash course in tariffs, imports, and exports in real time these days. Recognizing that tariffs will increase costs on virtually everything is just the beginning: the next step in acceptance is understanding what “everything” means. We import so many things that we use in our daily lives that it will be impossible to avoid what is essentially a new tax on things.
This means that any plans to renovate , remodel or renovate your home will be much more expensive. How much longer? Some experts suggest an overall increase of 25% in your budget , driven by an estimated increase in building materials costs of approximately $7,500 to $10,000 per home. That’s a lot of money, no matter how big or modest your renovation plans, and it may make you think twice about your project. But there are strategies you can use to mitigate the impact of these tariffs if you plan your home project carefully.
DIY thoughtfully
Your first step is to consider where you can offset these additional costs by doing some of the work yourself. Demolition is often an easy way to save some money from your renovation budget, and if you have any other applicable DIY skills (or a desire to learn ), you can offset the extra cost by doing the tiling, painting, or installation yourself. Just be careful: you won’t save anything if you mess up part of the renovation and have to pay someone to redo the whole project.
Top up your budget
The worst outcome of a remodeling or remodeling project isn’t necessarily the extra cost—it’s the inability to complete the job because you run out of money and are doomed to live in an unfinished home . To avoid this fate, review your renovation budget, which should already include some extras for unexpected expenses, and add extra cushion to cover potential tariffs.
Since everything about these tariffs changes more or less constantly, you can’t accurately predict every impact. Assuming the additional total cost is around 20% on top of your current estimate, it’s probably a pretty safe course.
Buy materials now
Exactly when prices will start to jump due to tariffs is difficult to quantify; it depends on how large the inventory is, what specific country the material is coming from, and when the last non-tariff shipments arrived. But if you have plans for a renovation in the near future, it might be wise to buy the materials now, even if you’re not ready to bring in contractors for a while. If you know you want imported marble tiles, for example, chances are they are as cheap now as they have been for a very long time. And if your kitchen has brand new appliances, you’ll almost certainly pay less today than you would in a few weeks or months.
Go home
Of course, you’re also wondering if you even need imported materials. Although the US is not a manufacturing hub, you can find domestic options for a wide range of materials for renovation and remodeling. Costs could still increase if these companies have to import goods to produce U.S.-made products, but this strategy can help reduce costs. Here are some examples:
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Chasing Paper offers tear-away tiles and wallpaper made in the USA.
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Mohawk Flooring offers laminate and other flooring products duty-free.
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Copeland Furniture produces collections that are primarily made in the US (like most furniture manufacturers, they import some machined parts, such as nuts and bolts), so the impact of tariffs will be minimal.
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Barker Cabinets makes kitchen cabinetry right here in the USA using domestic lumber.
A little research and consultation with your contractors can help identify many domestic material alternatives that can help offset or eliminate tariff costs.
Work under contract
When you hire a general contractor or subcontractor, there are always (or should be) negotiations. This means that you can offset some of the additional costs associated with tariffs by implementing some strategies in your remodeling contract :
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Price locks. If you rely on your contractor to supply the necessary materials for your project, ask to include price locks in the contract. This is language that freezes the cost of these materials for a certain period of time (usually several months). This will at least protect you from skyrocketing costs due to sudden changes in trade negotiations and tariff rates.
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Guaranteed Maximum Price (“GMP”). You can also ask for a maximum project cost to be included in the contract. The GMP is the maximum amount the contractor will be able to collect from you, regardless of what else may change in terms of material costs (or any other costs). It usually includes some extras to cover reasonable overages and their fees, but can be a useful hedge against uncertainty when it comes to the cost of the project.
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Shared Savings Clauses. You can also propose that you and the contractor “share the savings,” meaning that if they find cheaper options for materials, labor, or any other aspect of the job, you agree to pay them a percentage of the total savings. This incentivizes the contractor to evade tariffs, look for domestically produced alternatives, or find materials already in stock somewhere that do not need to be imported new.
Wait for the off-season
Another way to offset rate increases in a reno project is to wait. Many remodeling projects have a season, and contractors often go through lean periods when business drops. During these periods they are often incentivized to offer discounts or work with smaller budgets, so if you are willing to endure some additional logistical challenges (such as doing the work during the winter months), you can make up at least some of the difference in terms of tariff costs. Some examples of renovation “seasons” include:
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Most kitchen, bathroom and landscaping projects are completed in the spring, as are most roofing and HVAC projects. These contractors may be more willing to offer discounts in the fall or winter.
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Window replacement and landscaping projects such as patios are typically completed in the summer .
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Exterior painting is typically done in the fall , when temperatures are cooler and humidity is lower, but you can paint your home as long as the temperature is above 35 degrees, so painting companies may be interested in offering discounted jobs at different times of the year.
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Many flooring installers run promotions during the winter when business is slower.
If you buy materials now to save some money and then start the project in the off-season, you can maximize your savings.