Tariffs: A new wrinkle for home renovations
It all started with Etsy. I bought a small rug from Turkey from the on-line retail site this fall. The rug was advertised as having free shipping, and I eagerly tracked its progress to my home. When it hit the United States, I got a surprise email from UPS stating that I owed an extra $42 in duties. I paid the fees and forgot about it.
A few weeks later, Etsy drew me in again, and I placed an order for a row of bamboo hooks from a vintage store in France. Two days later, the owner contacted me and said she could no longer ship to the United States. Due to the new tariffs on international sales, she said it no longer made business sense to sell her wares here.
Duties for my $100 order would have added significantly to the cost of shipping.
I began to wonder, if I was seeing these small changes in purchases for my home, what were interior design professionals seeing in their much larger projects? I asked a few local designers about the changes they’ve seen.
Christine Baumbach, an Oak Park-based interior designer, says that what I experienced on Etsy were due to new tariffs on items valued under $800.
“Items under $800 used to sail through customs, and the Trump administration changed the rules, and now everything is subject to tariffs,” she said. “It comes under the category of ‘it’s a big mess.’ It’s really thrown a wrench into just about everything.”
Also based in Oak Park, Robin Schwadron, of R. Titus Designs, is helping me with some design projects in my own house. Titus said my experience is the norm for her firm. She sees a lot of the increased costs associated with tariffs being passed on in shipping. It’s not unusual for her to pay one fee for shipping to a client only to be hit with a bill a month later for additional tariffs.
Schwadron and Baumbach noted that the higher prices aren’t always readily apparent, as they are for shipping fees. Those hidden price increases might need more explanation for clients.
Clients involved in large construction projects might not realize that components like lumber or electrical parts are manufactured in other countries, which can result in higher prices.
When tariffs were first imposed, Baumbach said, it resulted in short supplies and things being out of stock. “Customers might buy a great induction stove but then couldn’t get the pieces needed to install it,” she said.
Initially, Baumbach said that just the announcement of future tariffs had retailers stockpiling some goods but “now, that inventory is sold through, so it’s starting to impact prices.”
Another way tariffs hit homeowners is in longer lead times for imported items.
While some furniture makers are trying to manufacture more items domestically, they are grappling with the issue that many of their components come from other countries.
“It’s frustrating for manufacturers as well,” Baumbach said. She said that it’s normal to receive apologetic emails from her trusted vendors about having to raise prices to keep up with tariffs.
Schwadron estimated that tariffs are affecting about 25% of her firm’s purchases.
She sees the price increases most strongly in fabrics and wallpapers manufactured in Europe. Most of the upholstered furniture she sources is made in the U.S., which has been helping keep prices more stable.
In some cases, the newfound costs have changed how Baumbach approaches a project, and she is re-using or reupholstering more of clients’ existing items.
“Reconfiguring takes a little more imagination. It’s way easier to run to the Mart with a credit card,” she said.
Baumbach said that she’s very lucky that her level of business has not changed and that clients are very understanding about the price increases and delays.
She pointed to a few reasons for the continued interest in updating homes here.
“In an area like Oak Park, most of our housing stock is old. It’s a semi-continuous investment. Fortunately for our whole community, people are willing to put the money in to maintain their homes.”
Baumbach also thinks the current political times adjust people’s emphasis on what is important in life. “People here very much realize that there’s no use fussing over which toilet to choose when many of their neighbors are worried about making rent because a family member is gone. People react with grace.”
She added: “More than anything, things are in flux, and homeowners are flexible. My client experience is people are incredibly gracious and they adapt and adjust.”
Schwadron said her clients recognize that the charges are a part of the process these days. She walks her clients through increased tariff costs before making purchases. While no one loves to see higher prices, they understand. It doesn’t mean they like it, but they also want their house finished.
Looking ahead, Schwadron said, there is still some uncertainty with tariffs. “We are starting to see lawsuits pop up,” she said, noting that some vendors are suing the government. “That means they’ve been trying to cover the tariffs, and are probably in trouble. So, pricing will go up.”
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