Tariff proof your renovation

Let’s chat about the one thing everyone can’t stop talking about this week. The potential new tariffs between the U.S. and Canada. As of today, they have been postponed for 30 days, however there is still the risk that they may take effect, so let's plan accordingly so your project investment dollars don't go completely off the rails.

What's the Deal with the New Tariffs?

Recently, the U.S. administration imposed a 25% tariff on goods from Canada. In response, Canada announced its own set of countermeasures, including a 25% tariff on $155 billion worth of U.S. goods. These tariffs cover a wide range of products you will be using in your project, from appliances and furniture to building materials. Although they have agreed to postpone these tariffs for now, there is still a very real risk they will become a reality. So if you are in the middle of a project, or have one coming up, you need to be proactive now to ensure your investment dollars aren’t at risk.

How Could This Affect Your Renovation?

1. Increased Costs: Many of the materials and products we use in renovations—like appliances, furniture, and certain building materials—are imported from the U.S. With the new tariffs, these items could become more expensive, potentially stretching your renovation investment. Review your investment budget now to see if you could withstand any potential costs that be be incurred.

2. Supply Chain Disruptions: Tariffs can lead to delays as suppliers adjust to new regulations and sourcing challenges. Even a product made in Canada, by a Canadian Company may use materials that come from the US. This might mean longer wait times for certain products or materials, which could delay your project timeline. Project delays always add costs to your projects, and risk your trades not being available when you need them.

3. Limited Availability: Some U.S. products might become less accessible due to increased costs or suppliers choosing to limit exports to Canada. This could reduce the variety of options available for your renovation. We are also seeing many people rush ordering now, just in case. So the stock availability of many items is already dropping even with the delay in the tariffs.

Strategies to Circumvent the Tariffs

If we take the right approach, there are several ways to mitigate the impact of these tariffs on your renovation:

1. Buy Canadian: Now is a great time to explore Canadian-made products. Not only does this support local businesses, but it also helps you avoid the added costs of tariffs. Canada has a rich array of high-quality furniture, fixtures, and building materials that can add a unique touch to your space. A couple places I love to use that manufacture in Canada are: 

1. Deco-Rest Furniture

2. Millbank Furniture

3. Urban Barn

4. Hanstone Quartz

2. Explore Alternative Suppliers: Consider sourcing materials from countries not affected by the tariffs. For instance, European or Asian manufacturers might offer comparable products without the added costs. Just be mindful of potential differences in standards and shipping times and costs. Talk with your material supplier, they may have products from these countries already in stock that you can select.

3. Get Creative with Materials: This could be an opportunity to think outside the box. Reclaimed or recycled materials can add character to your design and are often more budget-friendly. Check out your antique store to find a more unique piece to add to your space, or have an older family piece refinished (Check out Lucy Pearl for some great refinishing work). Plus, these options are environmentally friendly—a win-win!

4. Plan Ahead: With potential delays in the supply chain, it's crucial to order materials and products well in advance. This proactive approach can help keep your project on schedule despite any hiccups caused by the tariffs. Even without the tariffs, selecting finishes that are in stock, and ordering them as soon as you’ve selected them can ensure you stay on time and budget, and don’t have to find last minute replacement options. 

5. Stay Informed: As we’ve already seen, the effective date can change. For those true optimists, they may not actually take effect. Keep checking your local news to see how things progress through this battle. 

While the potential tariffs present challenges, they also open the door to new possibilities. By staying flexible, exploring local options, and planning carefully, you can still achieve a stunning renovation that reflects your style and stays within your desired investment.