By Andrew Schmidt
As remodelers, we’re no strangers to economic uncertainty. With new tariffs on imported construction materials making headlines, many homeowners are understandably asking: How will this impact my project? The good news? For the remodeling industry, these developments are less of a roadblock and more of an opportunity to underscore the value of remodeling over new construction. Here's what remodelers across the country need to know—and how we can turn this into a conversation that builds client trust and confidence.
Tariffs are taxes placed on imported goods—such as lumber, cabinetry, or flooring—intended to support domestic manufacturing. A 25% tariff on Canadian lumber or a 10% tariff on Chinese-made flooring and fixtures increases costs for importers, which may be passed along to builders and, eventually, consumers.
But here’s the key: Only about 7% of materials used in U.S. residential construction are imported. That means most remodeling projects are less exposed to major price hikes than many assume.
Here’s a quick look at where the U.S. sources imported building materials:
While tariffs increase material costs, the actual effect on remodeling budgets is lower than expected.
Consider a $150,000 kitchen or bathroom remodel:
Even if all these materials faced full tariffs, the overall project cost would rise by just 1.5-2%, or $2,250-$3,000.
Now compare that to new home construction, where raw materials account for a much larger portion of the budget. When tariffs drive up lumber, steel, drywall, and other structural materials, new home prices increase much faster than remodel budgets.
Additionally, many suppliers and contractors absorb part of these costs to stay competitive, reducing the immediate impact on homeowners.
Several factors make remodeling the better financial decision for homeowners:
✔ Smaller tariff impact: Remodeling uses fewer raw materials, limiting exposure to the harshest cost increases.
✔ Stronger domestic supply chains: Many remodelers work with local suppliers or U.S.-based manufacturers, providing more stability.
✔ High mortgage rates: Homeowners with low-interest mortgages are choosing to stay put—making remodeling the cost-effective way to upgrade.
✔ Rising new home prices: Tariff-driven increases in new construction costs make remodeling look more attractive by comparison.
When clients express concern over rising material costs, we can respond with facts—and confidence:
This is an opportunity for remodelers everywhere to lead with knowledge and clarity, reassuring clients that remodeling is a sound and strategic financial decision.
Whether you’re working in Minneapolis, Phoenix, or Boston, the story is the same: Tariffs may be in the headlines, but remodeling remains strong. While new construction faces steeper cost challenges, remodeling offers a more predictable, flexible, and cost-effective path forward.
At AMEK Design + Build—and for NARI members nationwide, this is a moment to shine. Let’s continue to educate clients, lead with confidence, and show that remodeling is not just resilient—it’s essential.
Want to share your experience or discuss regional trends?
I’d love to connect—reach out at www.linkedin.com/in/andrewpschmidt/
About the Author
Andrew Schmidt is the Owner/CEO of AMEK Design + Build in Bloomington, MN.
He is a past president of the NARI of Minnesota chapter.
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