New tariffs are coming for imported goods. With many products and supplies sourced from locations abroad, companies across the nation should now be focusing on ways to adapt to the evolving import environment to keep business sustainable—and profitable—over the next four years.

The construction and home improvement industries are no exception. For contractors and trade professionals, continuing success will depend on understanding how tariffs work, knowing what effects to expect from these changes, and pivoting when needed to cushion your company's bottom line.

Understanding Import Tariffs

Put simply, a tariff is a tax that the government places on goods and services imported from other countries. The purpose of tariffs is to encourage businesses and individuals to choose domestic products and services by making foreign options more expensive to acquire. Overall, tariffs support American-made materials by making them the more cost-efficient choice.

However, sometimes there may not be a suitable American option for a particular product or material. This is where tariffs may present a challenge for businesses. Here are the fundamentals to keep in mind:

• Importers pay tariffs to receive shipped foreign products. Whether it be an appliance, tool, or building material, the company or individual importing will pay the tax so these goods can clear customs.
• Importers typically pass costs down. Although the importers pay the initial tariff, they usually offset the cost by raising the prices on these goods for customers and clients down the supply chain. If the goods are raw materials, manufacturers will face increased costs for their supplies. If the goods are fixtures, tools, appliances, or components, retailers or contractors will pay more at the point of purchase.

Potential Effects of Increased Import Tariffs

With any change in top-level costs comes downstream effects. For residential construction and home improvement industries, here’s how tariff increases could impact future projects:

Higher Material Costs

Construction materials like lumber, steel, aluminum, tile, and electrical components are often imported and may be impacted by tariff increases. In the past, tariffs on Canadian lumber have led to significant cost increases affecting framing, decking, and cabinetry. Tariffs on steel and aluminum impact a variety of products—from structural beams and appliances to hardware materials.

Product Availability

Suppliers may stop importing certain impacted products or scale back the volume they import. Specialty items like tiles, fixtures, or building materials may become harder to find or unavailable, which could further inflate their costs. Tariffs may also cause delays—especially for specialty items, custom orders, or large-scale projects.

With these in mind, business owners and individual contractors may need to re-source alternative products and materials or design cost-effective workarounds.

How You Can Adapt

While tariff changes present new challenges, there are still many options available to business owners and contractors today. With some resilience and resourcefulness, you can help keep your organization flexible to overcome fluctuating costs and market demands. Here’s what we recommend:

• Plan for budgetary adjustments: Contractors may need to allocate larger portions of their estimates or budgets to account for tariff-affected materials and components. You may also need to account for longer lead times and cash flow impacts. Deliveries may take longer or experience delays. Reassess your scheduling timelines for projects to avoid disruptions and unnecessary downtime.
• Communicate with clients: If your base costs increase, passing that increase to the customer is essential to maintain your profit margin. Most clients can accept the change as long as you are transparent and provide clear breakdowns of costs and alternatives.
• Work with resourceful industry suppliers: Some suppliers have more extensive networks and better relationships with manufacturers than others. They may be able to source alternatives or highlight competitive U.S.-made materials or components that avoid tariffs and support local economies. With bulk purchasing power, they might also negotiate discounts, lock in pricing, or provide early insights into regulatory changes.

Diversify Your Supply with Coburn’s

Whatever waves of change are on the horizon, having a resourceful industry supplier like Coburn’s in your corner can keep your business on solid ground. Visit us today and tackle any project on your list with our extensive range of products, streamlined sourcing, and competitive pricing.