Yes, to all of the above!!
https://www.census.gov/newsroom/stories/world-trade-month.html
Have you been following the US tariffs that have been applied by the Trump administration, to goods from the many countries that trade with the US? What are tariffs?
Tariffs are taxes imposed on imported goods, paid by the importing business to its government.
My head has been spinning!
Depending on the country, tariffs may have been imposed, then reduced or delayed and then reimposed, but perhaps at a different rate. Not to mention reciprocal tariffs….
https://www.mapsofworld.com
China’s tariff rates for goods coming into the US have been particularly volatile. As of early June, the Peterson Institute for International Economics reported that the average rate is percentage is 51.1% (covering all imports), down from a high of 145%.
reuters.com
To briefly geek-out, in a New York Times article from March and just updated on June 4th, A Timeline of Trump’s On-Again, Off-Again Tariffs, the first tariffs began shortly after President Trump’s inauguration.
Just look at Canada and Mexico as examples:
- On February 1, 25% tariffs were imposed on most goods coming into the US from Canada and Mexico.
- On February 3, those tariffs were suspended for 30 days.
- On March 4, the tariffs were reimposed.
- On March 5, cars were exempted from the tariffs from Canada and Mexico.
- On March 6, most of the tariffs on Canadian and Mexican products were suspended, but steel and aluminum would receive tariffs on March 12.
- On April 2, a 10 percent tariff was applied to all nations importing goods to the United States — unless a tariff had already been announced on a product or industry.
And the ups and downs of tariffs have continued.
As of early June, Canadian and Mexican goods are subject to 25% when entering the US, unless they are exempted under the US-Mexico-Canada Agreement (USMCA). Lumber is currently subject to a 14.54% tariff rate, not the 25%, but there are not guarantees that the rate will not increase.
What does this mean for any of us buying home products and planning interior design projects?
www.designerstoday.com
To be blunt, prices have gone up, and are likely to continue to go up.
We had already seen prices rise during the pandemic, in part due to inflation as well as supply chain disruption. Currently, US manufacturers and importers, facing the tariffs and other increasing costs have had to raise their prices. From a Designers Today article:
For retailers, according to an April survey reported in Designers Today’s sister publication Furniture Today, few home furnishings retailers anticipate that they will avoid the impact of tariffs, and 69% of the 420 respondents view the tariffs as a long-term situation lasting six months or more. The remaining 31% voiced hope for a speedy resolution.
Other results of the tariffs could be fewer offerings as finished products from other countries become more expensive in the US, so fewer companies distribute them as their customers don’t buy them.
With raw materials from other countries also affected by tariffs, US-made products that rely on international components will become more expensive as well, and face lower sales.
How can you plan for a design renovation or for some updated furnishings in your home? Ask a lot of questions…
Amy Crosby Photography
- Have an open conversation with your building professionals about their costs – how are they responding to price changes?
Where do they source products and how do you reimburse them? Review their contracts carefully with them so you understand if you would purchase any products directly, for example, or if all purchases go through them.
Even if working with an American company, their products may be sourced from components from other countries, as noted above, so those products would still be subject to increased costs; ask how those companies handle product delays, as well as price increases.
- Do not rush into any buying decisions, just to avoid price increases. Design decisions should be made carefully, as you are likely to live with them for a number of years! Check in with any retailers you buy from to see how they are handling tariffs.
- If you are able to buy vintage items or those made by local craftspeople, you may find those more affordable and not subject to tariffs (unless the raw materials are subject to tariffs).
