Navigating Tariff Changes in Interior Design & Construction
Tariffs – essentially taxes on imported goods – are making headlines again President Trump’s trade policy outlook is shaking up import costs, and this has real implications for interior design and construction. In this post, we break down the current and proposed U.S. tariffs in plain language, focusing on how they affect furniture, lighting, wood products, textiles, and hardware. We’ll also cover which countries are most impacted, how vendors are responding with price changes, and what we at R. Nickson Interiors are doing to stay ahead. The goal: to keep you informed and reassured, even as we face these challenges together.
What’s Going On With Tariffs?
Simply put, tariffs are import taxes. When a product is brought into the U.S., the importer may have to pay a tariff to the government – a cost that often gets passed down the supply chain. For example, if an American lighting brand manufactures fixtures in China, it currently pays an extra duty (tariff) when those lights enter the U.S. Even American-made products can feel the squeeze: if a U.S. furniture maker imports parts like springs or fabric from abroad, those parts incur tariffs, indirectly raising the cost of the “Made in USA” piece.
Under President Trump’s first term, sweeping tariffs were placed on Chinese imports (25% on many goods), and those largely remain in effect today under President Biden. Trump argued these tariffs would boost U.S. manufacturing, while many economists noted they also raise prices for consumers. Now, with Trump advocating even tougher tariffs in his policy outlook, we’re seeing a new round of changes that could further impact prices.
Current vs. Proposed Tariffs at a Glance
Let’s break down the current tariffs versus Trump’s proposed tariffs for key products in interior design and construction:
Furniture & Décor: Since 2018, most furniture imported from China has been subject to a 25% tariff. This includes case goods (like cabinets, dressers, tables) and upholstery frames. Under Trump’s new plans, tariffs would broaden: a baseline 10% tariff on all imports is being imposed, with much higher rates for certain countries. China, for example, could face over 100% tariffs on furniture – in fact, recent updates show Chinese goods being hit with tariffs “more than a 100%,” increasing by almost 50% in one week. In short, a Chinese-made sofa that used to cost $1,000 wholesale could now incur over $1,000 in tariffs alone! Other countries like Vietnam (now a major furniture source) were initially slated for a hefty 46% tariff, but that was put on pause in favor of the across-the-board 10%. Bottom line:Furniture from any country now sees at least a 10% import tax, with China facing the steepest hikes.
Lighting & Electrical Fixtures: The lighting category is heavily sourced from China, and thus it has been carrying the 25% China tariff as well. Many lighting companies shifted production to other countries after 2018, but about 20% of the industry’s lighting components remained in China (often because certain intricate parts are only made there). Under the new policy, all imported lighting faces 10% in tariffs, and Chinese-made light fixtures would likely get hit with additional surcharges beyond that 10%. In effect, a chandelier from Europe or India might become 10% costlier, whereas one from China could be 35%, 50%, even 100% more expensive due to layered tariffs. This is significant because lighting has been one of the hardest product categories to move out of China, meaning many fixtures could see notable price jumps.
Wood & Building Materials: This includes things like flooring, cabinetry, lumber, and wood furniture components. Softwood lumber from Canada has long been subject to its own tariffs/duties (often around 9–20%) due to trade disputes, contributing to higher home construction costs. The new Trump tariff program interestingly exempts raw lumber from the baseline tariffs, likely to avoid further straining housing costs. However, wood products and cabinetry imported from China or other countries are not exempt. They’ll incur the 10% universal tariff, and Chinese wood products would face the extra high tariffs as well. Additionally, metal building materials like steel beams, nails, and plumbing hardware are still under the 25% global steel tariff from 2018, on top of any new baseline tariffs. So, a U.S. hardware manufacturer who imports metal screws from abroad might pay a 25% steel tariff plus the new 10% tariff if those screws come from overseas.
Textiles & Fabrics: Many fabrics, rugs, and wallpapers used in interior design are imported. Under the existing scheme, Chinese-made textiles had a smaller tariff (many were in a 7.5% category after a 2019 trade deal), whereas European luxury fabrics faced none. With the new outlook, all imported textiles face 10% tariffs minimum, with China’s potentially far higher. That means even American furniture makers who buy Italian fabric or Indian rugs will see a 10% cost increase on those materials. One furniture executive noted that despite sourcing as much as possible in the U.S., about 40% of their fabrics still come from places like China, Italy, Turkey, and India – those are now all pricier to import. This shows how even domestic production isn’t fully immune when the supply chain is global.
Hardware & Fixtures: This category covers things like cabinet knobs, door hardware, faucets, appliances, and tools. A lot of these items (or their components) come from China, which meant a 25% tariff in recent years. That remains and will be compounded by the new policies. For instance, if a specialty faucet is made in China, it had a 25% tariff before; now it gets the 10% on all imports plus whatever extra tariff applies to China. On the other hand, if a faucet is made in Germany or Mexico, it previously had no special tariff – but now it gets the 10% baseline (with Mexico being exempt if it meets USMCA trade deal rules). Net effect: most imported fixtures and hardware will see anywhere from 10% to 35% cost increases, depending on the country of origin.
Countries and Regions Most Affected
China is by far the most impacted country in this tariff scenario. Under Trump’s current approach, China faces “levies of up to 145% for some items”, an astonishing rate that indicates multiple layers of tariffs stacking up. (For context, U.S. tariffs on China were about 25% before; this new policy adds on so much that it’s well over 100% total in some cases!) China supplies a huge portion of interior design goods – roughly one-third of all U.S. imports – so these tariffs touch everything from furniture and fabrics to flooring and hardware.
Other Asian manufacturing hubs are also feeling the heat. Vietnam, which became the furniture industry’s go-to alternative after the first China tariffs, was initially going to get hit with a massive 46% tariff in Trump’s proposal. That plan was revised, and instead Vietnam (and about 75 other nations) are currently subject to the across-the-board 10% tariff on their goods. That means countries like India, Malaysia, Indonesia,and others that produce decor and construction materials are all now under a 10% import tax (where previously many of them had little to no tariff).
Europe is not spared either. The European Union, including Italy, Germany, and others known for high-end furnishings and lighting, had no special tariffs in the past (aside from a few narrow disputes). Now, European imports also face the 10% blanket tariff. In fact, a 20% tariff on EU goods was announced and then paused for 90 days – so there is a threat of even higher tariffs on Europe if negotiations don’t pan out. One Italian-made luxury footwear brand noted that a 20% U.S. tariff would force them to raise retail prices by about 20% as well (in two stages). We can imagine similar outcomes for European lighting or furniture if that 20% EU tariff takes effect: e.g., a designer sofa from Italy could jump from $10,000 to $12,000+ for U.S. buyers.
North America (Canada & Mexico): Under the USMCA trade agreement, most goods from Canada and Mexico still enter tariff-free. Trump’s hardline stance briefly included threats of 25% tariffs on all imports from Canada and Mexico in early April, but those have been put on hold. Instead, Canada and Mexico mostly see no new tariffs if they meet trade deal rules. (There are some exceptions – for example, if a product from Mexico doesn’t meet USMCA content requirements, it could face a 25% tariff under a separate order.) Also, keep in mind the existing tariffs on Canadian lumber remain in effect (separate from Trump’s new actions), which continue to affect wood and construction costs in the U.S.
In summary, the tariff landscape has broadened: it’s no longer just China in the crosshairs. Now virtually every importing country is affected by at least a 10% U.S. tariff, and China faces extremely steep penalties on top of that. This is a significant change from a year or two ago, when tariffs were more narrowly focused.
Why Prices Are Rising (and How Vendors Are Responding)
When you combine broad tariffs with an industry that sources globally, the result is clear: prices for many goods are likely to increase, even on domestic shelves. As Bill McLoughlin, editor-in-chief of Furniture Today, puts it, “there’s absolutely no question that the price of furniture will go up” if these tariffs stick around. In fact, suppliers had already started sending out price increase letters to retailers and designers in anticipation of the tariffs. At R. Nickson Interiors, we saw this firsthand – about half of our main manufacturers notified us of upcoming price adjustments as soon as the new tariffs were announced.
However, the price changes won’t be uniform or instantaneous. A 10% tariff doesn’t automatically mean a full 10% price hike on the tag. Here’s why: different parts of the supply chain are trying to share the burden instead of passing it all to the end customer. “Every step of the supply chain will be asked to eat a piece of the increase,” McLoughlin explains. For example, a Chinese factory might agree to slightly lower its price to keep its U.S. buyer, the U.S. importer might accept a smaller profit margin, and the retailer might trim theirs as well, all to soften the blow. Manufacturers are actively negotiating with their overseas suppliers to split the extra costs. One American furniture maker noted that when tariffs hit, “we go and negotiate with the suppliers to meet us in the middle”– and then they themselves take a bit of a margin haircut so that “any increases would be maybe in line with a predictable regular price increase rather than a drastic one”. In other words, they’ll try to make the retail price jump feel more like a normal annual uptick (say 5% or so) instead of a shocking 25% overnight.
That said, not every company can absorb costs in the same way, and we’re seeing a variety of vendor responses across the industry:
Across-the-Board Price Increases: Many large manufacturers and brands are choosing to raise list prices on all their products, not just those directly affected by tariffs, to spread out the impact. For instance, big U.S. furniture makers like MillerKnoll have announced roughly 4–5% increases across their lineup to offset higher costs for components like steel. Similarly, high-end retailer RH (Restoration Hardware) quietly bumped up prices – one of their popular sofas went from a $4,260 base to $4,930, roughly 15% higher than last year. These broad increases help cover tariff costs (and other inflationary costs) without singling out specific items.
Item-Specific Adjustments: Some vendors are taking a more targeted approach. If certain collections or materials are hit harder by tariffs, those items see bigger price hikes, while other items might stay the same. For example, a company that imports a particular line of Italian lighting might add a surcharge or price jump to that line if tariffs kick in, but leave its domestically made products unchanged. We heard from one home goods brand that said some products will require price increases, some will be temporarily out of stock, and some may even be discontinued because of the tariffs. They are essentially pruning or pausing certain offerings that became too costly, while trying to keep staples available at steady prices.
Tariff Surcharges: Rather than alter the base price, a number of companies are adding a separate “tariff surcharge” at checkout or on invoices. This is a little line item – essentially a temporary fee – that they promise to remove once tariffs go away. For instance, tech firm Honeywell added a 6.4% tariff surcharge on certain building control systems to “mitigate the impact of tariffs,” and noted it would eliminate that extra charge as soon as the tariffs are lifted. In our industry, we’ve seen distributors add a tariff surcharge on freight or on specific product categories like custom hardware, which keeps the published product price the same but increases the final bill. This strategy is a transparent way to say, “We hate this too, and we’ll drop the fee if the policy changes.”
“Wait and See” (Temporary Holds): A few vendors are holding off on immediate price changes, either because they have inventory already in the U.S. or they’re hoping the tariff situation might improve. For example, Swedish furniture brand Hem told customers they don’t foresee immediate changes in price because they have a dedicated U.S. warehouse stock for now. Similarly, a home accessories brand, Areaware, announced it will eventually have to raise prices but not until July, effectively giving a grace period to customers to shop at current prices. These companies are essentially using short-term buffers – like pre-tariff inventory or currency hedges – to delay price hikes, though they acknowledge increases are likely down the road.
Supplier Shifts & Workarounds: In the longer term, many manufacturers are adjusting where they make their goods. After the first round of China tariffs a few years ago, there was a big migration of furniture production to Vietnam, Mexico, and other countries. In fact, China’s share of U.S. furniture imports dropped from 50% to about 26% over the past decade as companies diversified their supply chains. Now with a baseline tariff on all countries, that strategy offers less escape, but it can still help – especially since China’s extra tariffs are so much higher than everyone else’s. We’re hearing about companies fast-tracking plans to make products in Vietnam, India, Eastern Europe, or bring more manufacturing back to the U.S. where possible. (One CEO quipped that these new tariffs have him trying out “deep breathing exercises” to cope, but also noted his company had already pulled almost all production out of China except some lighting which is tough to move.) On the flip side, when certain imports simply can’t be replaced easily – think specialty electronic parts or unique hardware – some manufacturers are buying up extra inventory before tariffs hit. An executive in our industry shared that they ramped up inventory from China before Chinese New Year in order to ride out the spring season without price hikes. These kinds of tactical moves can cushion the impact for a while.
The key point for clients is this: vendors and manufacturers are not uniformly jacking up prices overnight by the full tariff percentages. Most are trying a mix of strategies to control the increase – whether by trimming margins, adding small surcharges, or re-sourcing products – but modest price increases are filtering through. In fact, in the week after the latest tariffs were announced, about half of our vendors notified us of impending price changes (even if they didn’t always say “because of tariffs,” it was implied). The other half haven’t spoken up yet, likely because they are still evaluating or hoping to hold steady as long as possible. We also expect multiple rounds of adjustments throughout the year, rather than one big jump. Major manufacturers have signaled there may be several incremental hikes instead of one shock, to gradually adjust to the new costs.
“Made in America” Doesn’t Mean Immune
It’s important to clarify that even American-made products can get caught in the tariff net. We’ve touched on this, but it bears repeating because it’s a common question: “If I buy something made in the USA, why would tariffs affect it?” The reason is that very few complex products are 100% sourced domestically.
For example, you might have a beautiful North Carolina-made sofa – crafted in the U.S.A. with American labor. But perhaps the recliner mechanism inside is from Germany, the springs are from China, and the fabric is from Italy. Those parts coming in from abroad are subject to tariffs, which adds to the cost of building the sofa. The American manufacturer either has to absorb that cost or increase their price to the designer/retailer. In the furniture industry, even companies that “try to be hyper local” in sourcing find that maybe 40% of their materials (like certain fabrics or components) are global. As one store owner put it, “you just can’t get away from the fact that there are gonna be pieces that you have to source from outside the United States.” This includes lots of “smaller items... such as rugs, lights and decor” that even a store specializing in American-made furniture might carry.
The takeaway: American-made is a great thing to support and often comes with quality benefits, but it doesn’t guarantee insulation from global trade issues. Many U.S. manufacturers are raising prices too, albeit usually less dramatically than importers of fully finished foreign goods. They face somewhat smaller increases (since maybe 10% of their cost is affected instead of 100%), but they aren’t totally off the hook. So if you see a price tag rise on a piece labeled “Made in USA,” know that it could be due to the cost of that Italian leather or Chinese component that’s part of the finished product.
The Importance of Strong Vendor Relationships
In turbulent times like these, relationships are everything. At R. Nickson Interiors, we’ve always believed in building strong, trust-based relationships with our vendors, suppliers, and contractors. The current tariff upheaval is exactly why. Here are a few ways those relationships benefit our clients:
Priority and Advocacy: When tariffs caused a scramble, we were able to get on the phone with our key vendors and get the real story. Because of longstanding partnerships, vendors often give us a heads-up on upcoming changes – sometimes even before official announcements – so we can prepare and advise you early. If there are options to secure old pricing on an order before a deadline, they let us know. In some cases, vendors honored pre-tariff prices for orders that were in the pipeline, as a courtesy to our firm. That’s not something every designer or builder gets; it’s a perk of a solid relationship.
Handling Damaged Goods or Delays: Tariffs and trade tensions can worsen shipping delays or create logistical headaches (ports can get backed up as companies rush shipments in or out before tariff deadlines). If an item arrives damaged or late, having a good rapport with the supplier helps immensely. We can often get expedited replacements or priority service in claims. Our vendors know we’re all in this together to keep clients happy, so they’re quick to resolve issues – even if they themselves are dealing with chaos at customs. Essentially, our partners “have our back,” which means we can better take care of you.
Flexibility in Sourcing: Because we maintain a broad network of suppliers, we can pivot more easily if something becomes problematic. For example, if our go-to lighting vendor has a fixture on backorder due to tariff-related supply issues, we can call up another trusted source (perhaps a domestic artisan we’ve worked with before) to find an alternative that keeps the project on schedule. These relationships give us access to options – whether it’s alternate products or creative solutions – that mitigate the impact of tariffs. We’ve also been in constant communication with vendors about quality control, since there’s a risk of some suppliers swapping in cheaper materials to cut costs (a form of “shrinkflation” in furniture, like making a product slightly smaller or using a lower-grade wood to offset tariffs). With strong relationships, we can insist on maintaining quality and find other ways to address cost, rather than let standards slip.
In short, our partnerships with vendors are a safety net during uncertain times. It enables us to manage surprises and keep your projects running as smoothly as possible, even when external factors throw us curveballs.
How R. Nickson Interiors Stays Proactive for You
We understand that talk of tariffs and rising costs can be unsettling, especially if you’re in the middle of planning a renovation or furnishing a space. Our promise is to stay proactive and transparent so you’re never caught off guard. Here are steps we’re taking (and recommend as best practices) to navigate this terrain:
1. Prompt Payments & Good Standing: We make it a priority to pay our vendors on time (often early). This might sound unrelated to tariffs, but it’s actually crucial. In a volatile market, manufacturers allocate inventory and production slots to their reliable partners first. By being a top-tier client to our suppliers, we ensure we get priority service – whether it’s reserving that last container of Italian tile before a tariff hits, or getting our orders bumped to the front of the line. It also means if there’s a limited window to buy at a lower price, our orders will likely be honored. This reliability and respect is mutual; it keeps lines of communication open, which is invaluable when things are changing fast.
2. Early Warnings to Clients: As soon as we catch wind of a potential price increase or delay that could affect your order, we will let you know. Our approach is “no surprises.” For example, if a vendor informs us that prices will go up in two weeks due to these unprecedented tariff circumstances, we’ll reach out to you right away. In many cases, we might advise moving up a purchasing decision: “Let’s go ahead and order your dining chairs now, to lock in the current price, because next month they may cost more.” Clients have appreciated these heads-ups, and it gives you agency to adjust your budget or priorities proactively. We’d much rather have a slightly uncomfortable conversation today (“This might cost a bit more than we thought”) than a really unhappy conversation later (“Your project is over budget because costs went up unexpectedly.”). Transparency is key.
3. Helping You Control the Budget Scope: When costs shift, we’re here to help re-balance your project if needed. Think of it like recalibrating the scales. If a particular item or material becomes too expensive due to tariffs, we’ll work with you to find alternatives that keep the overall budget on track. For instance, maybe the custom light fixture from abroad jumped in price; we can look at a U.S.-made fixture that gives a similar look, or reallocate funds from another part of the budget (maybe choosing a less costly tile that frees up budget for the must-have light). We often identify which pieces of a project are most price-sensitive and which have more stable pricing, so if cuts or substitutions need to be made, they have the least impact on your design vision. Our goal is to protect the integrity and beauty of your project while being realistic about costs. It might mean adjusting quantities, phasing certain purchases in steps, or selecting a mix of high-end and more affordable items to balance out the increases.
4. Leveraging Bulk Orders and Storage: In some cases, if we know a tariff increase is looming, we might suggest ordering critical items in bulk ahead of time. For a construction project, this could mean purchasing all the lumber or steel needed as soon as possible to avoid future hikes. For interiors, it might mean buying furnishings that you’ll need a few months from now and storing them, rather than waiting. We have storage solutions and logistics in place to handle this if it makes financial sense. By locking in prices early, we shield your project from later volatility. We did this recently for a client’s large remodel – purchasing all the cabinetry and appliances in advance when we heard tariffs on those goods were imminent, saving the client thousands of dollars in potential increases.
5. Continuous Education and Positive Outlook: We stay educated on policy changes so you don’t have to. We’re reading the latest updates, talking to industry experts, and even sharing insights with our peers (recently, our principal Nicole was featured discussing tariff coping strategies with a professional network). We maintain a positive but honest outlook in all our communications. Yes, there are challenges – prices are rising and delays can happen – but there are also solutions and workarounds for nearly every issue. We truly believe that with smart planning and teamwork, we can still deliver your project on time and on budget (or very close to it). And we remind clients: a well-designed space is a long-term investment. A slight cost increase now, if managed well, won’t diminish the lasting value and enjoyment you’ll get from your home or office. We’re here to make sure of that.
In Conclusion: Context & Confidence
The world of tariffs and trade may be unpredictable, but our commitment to our clients remains steady. To recap, import tariffs are rising on many goods central to interior design and construction, especially those coming from China (with tariffs that can double or triple costs in extreme cases). Other countries are seeing new 10% duties as well, meaning price pressures across the board. Vendors are responding with price adjustments – some immediate, some gradual – and even U.S.-made products might see indirect increases due to the global nature of supply chains. It’s a complex picture, but not one without hope.
Our message to you is this: we’re on top of it. We’re working closely with our vendors, leveraging our relationships to cushion the impact, and keeping you informed each step of the way. In practice, this means we’ll strive to prevent nasty surprises. You might see some price quotes updated and hear us discuss tariffs more than usual, but it’s all to ensure you have the full context and can make the best decisions for your project. If something is going to cost more or take a bit longer, you’ll hear it from us with a plan of action on how to handle it.
Ultimately, we want you to feel confident that even in a challenging economic climate, your interior design or construction project is in good hands. We’re passionate about delivering beautiful results without compromising your budget goals. By staying proactive, flexible, and transparent, R. Nickson Interiors will continue to turn your visions into reality – and we’ll do it with the same care and attention as ever.
In uncertain times, an experienced guide makes all the difference. Tariffs may rise and fall, but our dedication to you is a constant. Please don’t hesitate to reach out to us with any questions or concerns about how these trade changes might affect your project. We’re here to reassure and help, every step of the way.
Thank you for trusting us with your space. Together, we’ll navigate these changes and create something beautiful, enduring, and worth every penny.
