As of May 2025, the United States has implemented significant tariff increases on a range of imported goods, including construction materials and home improvement products. These tariffs, some exceeding 145% on certain Chinese imports, are reshaping the landscape for builders, remodelers, and homeowners.
The National Association of Home Builders estimates that current tariffs have increased the typical cost of new home construction by approximately $9,200. Key materials such as lumber, steel, aluminum, and drywall—heavily sourced from Canada and Mexico—are now subject to higher duties, leading to increased prices. For instance, Canadian lumber, which comprises 70% of U.S. softwood lumber imports, faces a 14.5% tariff, with potential hikes pushing costs even higher.
Home appliances and smart home devices, often imported from China and Mexico, are also impacted. Tariffs up to 145% on Chinese goods have led to price increases on refrigerators, washers, and air conditioners, with some prices rising by as much as 20%.
The imposition of tariffs has disrupted supply chains, causing delays and shortages. Retailers and contractors are experiencing longer wait times for materials and products, affecting project timelines and budgets. Additionally, some builders are stockpiling materials to mitigate future cost increases, further straining the supply chain.
For homeowners and renovators, the increased costs may lead to delayed or scaled-back projects. Many are opting for alternative solutions, such as choosing refurbished items or sourcing materials from countries with lower tariff rates. The uncertainty surrounding tariff durations adds to the complexity, making long-term planning challenging.
What has not changed? The need for reliable sources of financing for home improvement projects. During times of uncertainty, consumers are reluctant to deplete their savings. With financing, consumers can proceed with their home improvement projects, garages and storage sheds with a financing solution without touching their rainy day fund. If your home improvement or construction business does not offer financing, contact J Money to discuss our solutions.