Costs have been creeping up for Chad Esslinger, who runs an interior design business outside of Chicago, ever since President Donald Trump first announced sweeping global tariffs in early April. One business Esslinger often relies on to provide light fixtures, rugs, furniture and all manner of wholesale home goods for clients implemented a “temporary tariff surcharge” of 14% on all goods from China and a 2% charge on items imported from any other country beginning on May 12. Another business that provides fabric, wallpaper and trim emailed Esslinger to say it would re-evaluate its pricing strategy on May 15. “I’ve seen it where sometimes they don’t even warn you. I’ve gone to a website to look at a product I might have sourced a month ago, and now suddenly it’s a certain percentage more,” Esslinger said. “Just like everything, you have to pass that cost along if you want to stay profitable,” he added. For the last few years, the home renovation space has been booming, but Washington’s ever-shifting tariff policies threaten to change that. That’s because the US imports billions of dollars worth of home goods from around the globe, from Tuscan tilework to Chinese refrigerators. Those products, along with raw construction materials, have been hit by Trump’s tariff agenda. Professionals in the home renovation space, from decorators to general contractors, told CNN their businesses have been bracing for higher prices since President Donald Trump first announced tariffs on imports from most countries in early April. Though Trump has temporarily placed many of the largest tariff increases on pause, high tariffs remain in effect, and uncertainty about future costs persists, many said. “It’s top of mind at this point. On the contractor side, they’re waiting to see how it unfolds,” said Julie Kheyfets, the CEO of Block Renovation, an online platform that connects contractors with homeowners. “The thing about renovations is, every renovation is different. You can’t stock a bunch of extra materials ahead of time, because every homeowner wants something different.” Impact of on-again, off-again tariff policy Some home goods have already been pulled from the market entirely due to sharp changes in tariffs. Sandy Schargel, an interior decorator from Albuquerque, New Mexico, was recently informed that thousands of dollars in light fixtures she had ordered for a client were no longer available, due to tariff-induced discontinuations. By the time she was notified, alternative options from the same lighting company had all risen 10% in price. Schargel told CNN that if she can no longer access some imported products, she would turn to American-made alternatives, which may add costs for homeowners. “When you come to the lower price points, American-made does limit things, somewhat,” Schargel said. “Imported merchandise often has lower price options.” Schargel said she has encouraged clients on tighter budgets to order what they need as soon as possible to avoid prices going up further down the line. China is one of the largest exporters of home goods to the US. In 2024, the country sent more than $438 billion worth of goods into American homes. Nearly 19% of that total was machinery and mechanical appliances, such as refrigerators, dish washing machines and laundry machines, according to data from the US International Trade Commission. Furniture, bedding, lamps and lighting were a further 4% of last year’s imports from China. For a little more than a month, the 145% tariff Trump placed on imports from China vastly eclipsed tariffs on other nations’ imports. However, on Monday, the US and China agreed to lower tariffs on each other – a positive step in trade relations between the two countries after tensions had ratcheted up in the last few weeks. For at least 90 days, most imports from China will be taxed at 30%. Blanket 10% tariffs are also in place with most other US trading partners, though higher rates could kick back in on July 9. It is too early to tell whether the pause in the highest tariffs on China will reverse price hikes and shortages. Esslinger said so far this week, no home goods importers he works with have said they planned to lower prices. Tariffs fueling uncertainty Earlier this year, a report from the National Association of Home Builders estimated that the remodeling industry is poised for growth amid an aging housing stock. As fewer new homes have been built in the last decade and fewer Americans move, homeowners would be more likely to renovate their older homes, the report said. Esslinger, the interior designer from the Chicago area, along with other home renovation professionals CNN spoke to, said tariff whiplash was slowing down business, though. “The word that just keeps coming up is uncertainty,” Esslinger said. “I think some folks just don’t feel super confident. I’ve had some clients say they’re going to hold off for a little bit and see how things go, while some have scaled back a little bit.” But not everyone in the home renovation space has felt the full impact of tariffs yet. Nina Sepiashvily, who runs I&N Builders, a New York City-based construction company, said that while she may have noticed a slight increase in prices so far, it pales in comparison to the soaring prices she experienced in the years after the start of the pandemic, when inflation began to take off. As a construction company owner, she generally doesn’t handle buying finished goods like appliances and furniture, but rather handles purchasing building materials, like lumber. Although the US imports a significant percentage of lumber from Canada, the additional tariff increase on that import hasn’t yet taken effect. The tariff on lumber currently sits at 14.5%, but the US Commerce Department has signaled it plans to hike tariffs on Canadian lumber by more than double, to 34.5%, in the coming months. “We haven’t really seen (tariffs) affect our costs yet,” Sepiashvily said. But while clients are still interested in planning renovations, many aren’t ready to move forward yet, she added. Homeowners are “uncertain about tariffs, they’re uncertain about their investments and they’re afraid to pull the trigger.”
Planning to renovate your home? That may soon cost more due to tariffs
TruthLens AI Suggested Headline:
"Home Renovation Costs Rise Amid Ongoing Tariff Uncertainty"
CNN
6.4
TruthLens AI Summary
Chad Esslinger, an interior designer operating near Chicago, has observed a gradual increase in costs for his business due to the tariffs imposed by the Trump administration since early April. A supplier that provides essential home goods, including light fixtures and furniture, has implemented a temporary tariff surcharge of 14% on products sourced from China, along with a 2% charge on items imported from other countries. This surge in costs is not an isolated incident; it reflects a broader trend affecting the home renovation industry, which relies heavily on imports for various materials and goods. As the U.S. imports billions of dollars in home goods, including appliances and decorations, the uncertainty surrounding tariffs has created a challenging environment for renovation professionals. Many are now forced to pass these increased costs onto clients to maintain profitability, leading to a heightened sense of anxiety within the industry as they await further developments in tariff policies.
The impact of fluctuating tariffs has resulted in some imported products being withdrawn from the market entirely. For instance, interior decorator Sandy Schargel faced a situation where ordered light fixtures were discontinued due to tariff changes, forcing her to seek alternative options that came with a price increase. This scenario underscores the volatility that renovation professionals are grappling with, as they navigate client expectations and budget constraints. While some in the industry are still planning renovations, many homeowners are hesitant to proceed due to concerns about rising costs and uncertain investments. The remodeling industry was initially positioned for growth, driven by an aging housing stock and a lack of new builds, but the ongoing tariff situation has introduced a significant degree of uncertainty that is impacting consumer confidence and business operations across the board. As the government considers further changes to tariffs, the future of home renovation costs remains unclear, leaving many professionals and homeowners in a state of apprehension.
TruthLens AI Analysis
Rising costs in the home renovation industry are becoming a pressing concern, particularly due to the impact of tariffs introduced by the Trump administration. The article highlights the struggles of professionals like Chad Esslinger, who face increased prices for essential goods and services, which could ultimately affect consumers planning renovations.
Purpose Behind the Article
The news aims to inform readers about the direct consequences of tariff policies on the home renovation industry. By showcasing personal stories and quotes from industry professionals, it emphasizes the challenges faced by businesses and consumers alike. This serves to raise awareness about the broader economic implications of government policies.
Public Perception and Sentiment
The article seeks to generate concern among homeowners and potential renovators about the rising costs associated with tariffs. By detailing specific instances of price increases, it fosters a sense of urgency and anxiety regarding future renovation plans, potentially leading to a decrease in consumer confidence in the market.
Information Omission
While the article focuses on the negative impacts of tariffs, it may not fully address the potential benefits of such policies, such as the possibility of supporting domestic industries or addressing trade imbalances. This selective focus could lead readers to adopt a more pessimistic view of the economic landscape.
Manipulative Elements
The article employs a narrative that emphasizes personal anecdotes and the struggles of business owners, which can evoke emotional responses from readers. By framing the situation in a way that highlights hardship and uncertainty, it may manipulate public sentiment to view tariff policies negatively, without providing a balanced perspective.
Trustworthiness of the Article
The information presented appears to be based on real experiences and quotes from credible sources within the industry, enhancing its credibility. However, the lack of comprehensive analysis regarding the broader implications of tariffs may reduce its overall reliability as a holistic economic commentary.
Underlying Message
The narrative suggests that ongoing tariff policies are detrimental to both businesses and consumers, indicating a need for change in governmental trade practices. This perspective aligns with the interests of those directly affected by rising costs, particularly in the home renovation sector.
Connection to Other News
When compared to other reports on economic policies and their effects on various sectors, this article fits within a broader narrative concerning the challenges posed by trade regulations. It may connect with discussions about inflation, consumer spending, and the overall economic climate under the Trump administration.
Impact on Society and Economy
The potential consequences of this news are significant, as rising renovation costs could lead to a slowdown in home improvement projects, affecting not only contractors and suppliers but also the housing market. A decrease in renovation activities may have downstream effects on home values and consumer spending.
Target Audience
This article likely resonates more with homeowners, DIY enthusiasts, and professionals within the home improvement industry. It addresses those who are directly impacted by these tariff policies and may lead to heightened awareness and concern among these groups.
Market Implications
The news could influence stock prices for companies involved in home goods and construction materials, as investors may react to anticipated changes in consumer behavior. Stocks related to home renovation, construction, and retail sectors could experience volatility as the economic landscape shifts.
Geopolitical Relevance
While the article is primarily focused on domestic implications, it also reflects broader geopolitical tensions related to trade and tariffs, especially with China. This aspect remains relevant in discussions about international relations and economic policy, particularly in the current global context.
Use of AI in Article Creation
It is possible that AI tools were utilized in crafting the article, particularly in organizing data and quotes. However, there is no clear indication of AI bias or manipulation in the narrative that would lead to a specific agenda, as the focus remains on factual reporting.
In summary, the article presents a reliable account of the challenges posed by tariffs in the home renovation industry, though it may lack a balanced perspective on the broader implications. The narrative strategically aims to evoke concern among readers, highlighting the urgency of the situation.