Kitchen cabinet companies hope new US tariffs pay off in the long run

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NEW YORK (AP) — Cabinet dealers, interior designers and remodeling contractors in the U.S. hope new tariffs on imported kitchen cabinets, bathroom vanities and upholstered wooden furniture that kicked in Tuesday will create more business for them and eventually boost domestic production of those products.

But several small business owners in the home improvement industry say they expect some short-term pains from the import taxes: Clients with projects already on the books might balk at having to pay more for the budget-priced cabinets they selected. Potential customers may postpone kitchen and bathroom renovations until costs — and the economy — seem more stable.

“I think the volatility around pricing is damaging to the remodeling industry,” said Allison Harlow, an interior designer in Michigan whose company, Curio Design Studio, creates and builds custom bathrooms and kitchens. “Most people will hear the headline of ‘Kitchen cabinets will go up 50%’ and might just opt out of even reaching out to our company.”

Despite high mortgage rates having depressed sales of existing homes in recent years, a forecast of remodeling activity by Harvard University's Joint Center for Housing Studies predicts that homeowner spending on improvements and maintenance will remain steady into the middle of 2026.

A proclamation that President Donald Trump signed on Sept. 29 cited national security and foreign trade practices as grounds for imposing the tariffs on certain finished wood products and product components.

Of them, imported vanities and kitchen cabinets incurred the steepest tax rates: 25% until the end of the year and 50% starting on New Year’s Day.

Upholstered chairs, seats and sofas also are subject to a 25% worldwide tariff effective Tuesday, with the rate scheduled to increase to 30% on Jan. 1. In addition, the presidential proclamation put a 10% import tax on softwood timber and lumber, which comes from evergreen trees like pine and cedars.

Softwoods often are used to make furniture and in wood frame construction. Canada is the source of about 85% of the softwood lumber the U.S. imports, or nearly one-quarter of the national supply, according to the National Association of Homebuilders.

Some U.S. trading partners are receiving more favorable treatment when it comes to the furniture and cabinetry tariffs. The tax on U.K. exports was capped at 10%, while the rate for wood products from the European Union and Japan was capped at 15%.

The American Kitchen Cabinet Alliance and other trade and advocacy groups lobbied for tariffs to help offset what they described as a flood of cheap cabinets from countries such as Vietnam, Malaysia, China and elsewhere in the decades since more U.S. furniture manufacturing moved offshore.

U.S.-made products tend to cost more but often are of better quality.

John Lovallo, an analyst at UBS bank, estimates the tariffs on imported cabinets and vanities could add roughly $280 to the average cost of building a single-family home, not enough to sink a project that often carries an overall price tag more than 1,000 times larger than that.

Some business owners say they plan to cover any tariff-related costs for now instead of raising customer prices.

John Dean, founder of Dean Cabinetry in Connecticut, sells cabinets that run the gamut from lower-priced imports to custom models made in his shop. Imported products account for about a third of his sales, but Dean said he does not expect much fallout from the tariffs.

Two of his vendors that he buys imported cabinets from, in China and Vietnam, said they would raise prices by 10% to recoup some of the duty costs.

Dean said he would not charge customers more for now. Since a kitchen remodel is a big ticket item to begin with, and with the costs of building lumber and labor going up, raising cabinet prices might hurt demand, he said.

“My personal perspective is most small- and medium-sized businesses are trying to absorb those costs," he said.

The wood product tariffs are likely to have a bigger effect on selection than on prices as importers scale back their orders to focus on bestsellers and products with the highest profit margins, according to Jason Miller, a supply chain management professor at Michigan State University.

“It will make importers more selective in the varieties they bring in,” Miller said: “So I think the bigger impact is going to be on the product variety side: Consumers should expect less variety.”

Although the White House said the tariffs were intended to boost domestic production and protect U.S. businesses from predatory trade practices, some cabinet makers say that will be difficult because their supply chains are multinational.

Linq Kitchen, a Los Angeles-area company that designs, builds and installs modern-style kitchen cabinets, uses plywood and melamine panels from Asia and Europe in its projects, co-founder Josh Qian said. A suitable domestic alternative does not exist, he said.

“The kitchen cabinet industry is highly globalized, and even U.S.-based manufacturers depend on imported materials, hardware, and finishes,” Qian said. “These tariffs may sound protective, but in reality, they often raise costs across the entire supply chain."

At the same time, cabinet companies that don't sell foreign products or rely on imported components look forward to capturing more business. One is ACO Denver Custom Cabinetry in Denver, Colorado, which enlists Amish, Mennonite, and New German Baptist shops in the Midwest to handcraft custom cabinets.

Andrea Mulkey, the company's president and co-founder, said her main concern is whether interest in American-made cabinets will grows too quickly.

“It’s hard to predict how much new business might come our way as competitors are affected,” Mulkey said. “We simply couldn’t serve everyone if demand suddenly surged. The real challenge is similar to what we saw post-COVID, when everyone got busy at once, and access to raw materials became strained.”

The Curio Design Studio has its custom cabinets made in Minnesota and Wisconsin, but Harlow worries about the tariffs costing her customers.

“I think it will decrease consumer confidence and create a narrative that the work is going to get inherently more expensive,” Harlow said. “I think we will have to work harder to attract potential clients with messaging of how this blanket statement, ‘Kitchen cabinets will go up 50%,’ does not impact our particular business model.”