If you’re like most people, you’re getting a real-time crash course in tariffs, imports, and exports these days. Realizing that tariffs are going to increase costs for just about everything is just the beginning: The next phase of acceptance is realizing what “everything” means. We import so much of the stuff we use in our daily lives that it’s going to be impossible to avoid what is essentially a new tax on stuff.
That means that any plans you have to renovate, remodel, or repair your home are going to be a lot more expensive. How much more? Some experts suggest a blanket 25% increase in your budget, driven by an estimated increase in building materials costs of about $7,500 to $10,000 per house. That’s a lot of money no matter how big or modest your renovation plans are, and might make you think twice about your project. But there are strategies you can use to blunt the impact of those tariffs if you plan your home project carefully.
DIY thoughtfully
Your first step is to consider where you can offset those extra costs by doing some of the work yourself. Demolition is often an easy way to shave a bit of money from a renovation budget, and if you have any other applicable DIY skills (or the willingness to learn), you can offset extra costs by doing some tiling, painting, or installations yourself. Just be thoughtful about it—you won’t save anything if you screw up part of your renovation and have to pay someone to re-do the whole project.
Pad the budget
The worst outcome of a renovation or remodeling project isn’t extra costs, necessarily—it’s not being able to finish the job because you run out of money and finding yourself doomed to live in a half-finished house. To avoid that fate, review your renovation budget—which should already include some padding against unexpected costs—and add an additional “pad” to cover potential tariffs.
Since everything about these tariffs changes more or less constantly, you can’t accurately predict each and every impact. Assuming an additional blanket cost of about 20% on top of your current estimate is probably a pretty safe course.
Buy materials now
When, exactly, prices will start jumping due to tariffs is difficult to quantify; it depends on how large a supply remains, the specific country a material is sourced from, and when the last non-tariffed shipments arrived. But if you have plans for a renovation in the near future, it might be smart to buy your materials now, even if you’re not ready to engage contractors for a while. If you know you want imported marble tile, for example, chances are they’re as cheap right now as they’re going to be for a very long time. And if your kitchen reno involves all-new appliances, you’ll almost certainly pay less today than you will in a few weeks or months.
Go domestic
Of course, you also ask yourself if you need imported materials at all. While the U.S. isn’t a manufacturing powerhouse, you can identify domestic options for a wide range of renovation and remodeling materials. Costs still may go up if those companies need to import goods to produce those made-in-the-U.S. products, but this strategy may help mitigate costs. A few examples include:
What do you think so far?
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Chasing Paper offers made-in-the-U.S. peel-and-stick tile and wallpaper.
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Mohawk flooring offers laminate flooring and other flooring products that are free from tariffs.
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Copeland Furniture manufactures collections that are mostly made in the U.S. (like most furniture makers, they import some machined parts, like nuts and bolts), so tariff impacts will be minimal.
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Barker Cabinets makes kitchen cabinetry right here in the U.S. using domestic lumber.
A little research and consultation with your contractors can identify many domestic alternatives for materials that can help offset or eliminate tariff costs.
Work the contract
When you hire a general contractor or a subcontractor, there’s always a negotiation (or there should be). That means you might be able to claw back some of the extra tariff-related costs by pursuing some strategies in the renovation contract:
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Price locks. If you’re relying on your contractor to supply the necessary materials for your project, ask to insert price locks in the contract. This is language that freezes the cost of those materials for a period of time (typically a few months). This at least insulates you from a sharp uptick in costs due to sudden shifts in trade negotiations and tariff rates.
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Guaranteed Maximum Price (“GMP”). You can also ask to have the maximum cost of the project written into the contract. A GMP is the most the contractor will be able to collect from you, no matter what else might change in terms of their materials costs (or any other cost). It usually includes some padding to cover reasonable overages and their fees, but it can be a useful defense against uncertainty when it comes to the cost of the project.
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Shared savings clauses. You can also suggest that you and the contractor “share savings,” which means that if they identify lower-cost options for materials, labor, or any other aspect of the job, you agree to pay them a percentage of the savings total. This incentivizes the contractor to evade tariffs, seek out domestically sourced alternatives, or find materials already sitting in a warehouse somewhere that don’t need to be imported new.
Wait for the off season
Another way to offset tariff increases in a reno project is to wait. Many renovation projects have a season, and contractors often go through skinny periods when business drops off. They’re often motivated to offer discounts or work with smaller budgets during these periods, so if you’re willing to endure some extra logistical problems (like having work done 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 done in the spring, as are most roofing and HVAC projects. These contractors may be more amenable to discounts in the fall or winter.
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Window replacements and hardscaping projects like patios are usually done in the summer.
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Exterior paint is typically done in the fall, when temperatures are cooler and humidity is lower, but you can have your house painted as long as temperatures are above 35 degrees, so painting companies may be motivated to offer discounted work in different seasons.
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Many flooring installers run promotions during the winter, when business is slower.
If you buy your materials now to save some money and then start the project in the off-season, you can maximize your savings.
