Jessica Wong
7 min read
Tariffs are hammering the home renovation industry, pushing designers, contractors and homeowners into a financial crunch as rising costs create chaos in the supply chain.
Chad Esslinger, an interior designer based outside Chicago, says the pressure has been building ever since President Donald Trump introduced sweeping global tariffs in early April.
Costs have been creeping up for Esslinger, telling CNN that one key supplier, providing lighting, rugs and furniture, slapped a 14% “temporary tariff surcharge” on Chinese imports and 2% on goods from any other countries starting May 12. Another vendor dealing in fabric and wallpaper also warned of imminent price hikes.
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“I’ve seen it where sometimes they don’t even warn you,” he said. “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.”
To survive, Esslinger says the price hikes can’t be absorbed; they have to be passed on.
“Just like everything,” he said, “you have to pass that cost along if you want to stay profitable.”
The home renovation market has thrived in recent years, bolstered by an aging housing stock and fewer new builds. But that growth is being threatened by U.S. trade policy.
In 2024, China exported more than $438 billion worth of goods to the U.S., with nearly 19% of that total in machinery and appliances, including refrigerators, dishwashers, laundry machines, and another 4% in furniture and lighting, according to the U.S. International Trade Commission.
A recent agreement between the U.S. and China has temporarily lowered that rate to 30% for 90 days, but the broader market remains unsettled. Blanket 10% tariffs remain in effect for many other trading partners, and those rates could climb again after July 9.
“It’s top of mind at this point. On the contractor side, they’re waiting to see how it unfolds,” Julie Kheyfets, CEO of Block Renovation, a platform that connects homeowners with contractors, told CNN.
“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.”
