Contractors brace for tariff impact on home repair costs
KANSAS CITY, Mo. (KCTV) - Local contractors say home repair prices could soon spike, as new tariffs threaten to increase the cost of materials like lumber, drywall, and appliances.
This week, the U.S. Department of Commerce announced plans to raise duties on Canadian softwood lumber imports to as much as 34%. The federal government argues Canada is unfairly subsidizing its lumber industry. The move is part of a broader trade effort that includes a new 104% tariff on select Chinese imports, expected to take effect this week.
That has contractors like Michael Hoag of Hoag Improvement in Kansas City on edge.
“Am I worried about it? I’m kinda worried about it,” Hoag said. “Is Canada gonna continue to supply us? That’s their choice.”
Hoag, who builds decks, cabinets, and framing for homes, said he currently pays around $3.45 per board. During the pandemic, that number shot up to nearly $10.
He’s concerned history could repeat itself.
“If I give somebody an estimate, I tell them it’s good for 30 days — but we might not start for six months,” Hoag said. “There’s no way to predict how prices will change between now and then.”
About 84% of softwood lumber used in the U.S. comes from Canada, according to the Department of Commerce. Contractors like Hoag also rely on imported materials like fasteners, drywall, and plumbing supplies — many of which could also be impacted by new tariffs.
“It doesn’t concern me where it comes from, as long as I can get it,” he said.
A recent report from the National Association of Home Builders found that increased tariffs on lumber, steel, and aluminum could tack on over $9,200 to the cost of building a new home.
For now, Hoag says it’s business as usual, but he’s bracing for changes. He is booked with projects through the summer, but long-term, the uncertainty is real.
“The worst-case would be I go out of business — or I just can’t do anything because I can’t get the goods,” he said.
According to Johnson County Community College economics professor Tim Hamilton, the real question for small businesses and consumers is whether or not the additional tariff tax will get ed on along in the final product, and if so, how much. The Trump istration estimates that the -through rate is .25 or 25% of the tax.
“The real issue for consumers and small businesses is what type of market structure they are in. If they have a lot of competitors, then they will along only a minimal amount of the tax because their competitor may not along as much and they have to remain competitive,” said Hamilton. “On the other hand, if the business is in an oligopoly market and has very minimal competition, then they may along the full amount of the tax and even potentially add on an additional margin for safety.”
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