Tariffs: A reason to sign that remodel contract...yesterday.

I think nearly every American can agree on one thing right now…there’s a LOT of change going on.

While none of us can be certain where things will end up, what we do know is that Tariffs are no longer just talk, they have been formally put on the table and the tariffs on China begin today.

As of yesterday, tariffs on Canadian and Mexican goods have been delayed by a mere 30 days. This leaves little to the imagination of the likely outcomes in the future.

So what does this mean for that remodel you’ve been putting off?

Building supplies are major imports from Canada - specifically steel and lumber. Remember in 2020/2021 when home building and remodel prices skyrocketed, to the point where builders wouldn’t even fully solidify pricing when they signed a contract? Much of that had to do with lumber supply shortages from Canada.

Mexico supplies much of our lime and gypsum product which makes up plasterboard, cementboard, cement, and mortar. All critical components in building structures, additions, bathrooms, driveways, garages, etc.

We are looking at very similar implications we saw in 2020/2021 for surging prices in materials which will lead to larger contingencies built into contracts, increased building and remodeling costs, and the potential for runaway expenses making projects un-financeable for many homeowners.

Long story short, if you’ve been sitting on a remodel bid because the work feels intimidating or the bid felt a tad high before - run, sign it and get to work. If it felt way too high, start making calls to alternate contractors and get a couple more bids STAT.

This is the time where quick action will be rewarded in significant savings.

Building industry experts are already advising their tradespeople to begin planning for price hikes ahead of the tariffs so they are not caught in a negative margin. It is possible, many contractors will not even wait for everything to go into effect and prices will begin to rise in the coming weeks.

The risk of in-action?

You’ll end up with a project where the contractor will not commit to their bid on material prices. You may begin the remodel and half way through, expenses have gone so out of whack that you have to pause or make decisions that lead to an end product that is out of alignment with your goals or aesthetic.

Don’t get stuck