The latest round of tariffs on imported Chinese products has hit $10 billion worth of products exclusive to the home building and remodeling sectors, including floorboards, cabinets, HVAC equipment, and mosaic tile, according to the National Association of Home Builders.
The tariff starts at 10%, or a $1 billion tax increase on the building products industry, but could rise to 25%, or $2.5 billion, by the end of 2018. An additional duty will be imposed on Chinese quartz, following the Commerce Department’s investigation into the illegal “dumping” of imported quartz in the U.S.
Remodelers and distributors report prices are already rising in anticipation of the new tariffs.
"Clients and contractors are having to set contracts with escalation clauses for projects that are being scheduled for six months from now, largely because we're not sure how far prices are going to go north," says contractor Justin Sullivan. "…It puts a little bit more pressure on everyone to try and be as diligent about the costs as possible."Read More