How Trump’s tariffs on household goods are expected to collide with consumers and businesses

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Despite the costs associated with purchasing and maintaining homes remain out of reach for many Americans, new tariffs on housing equipment manufacturers will make it difficult to have dire consequences for many of the household goods industry, let alone the wider economy.

The tariffs announced on True Social by President Trump on September 25th include a 30% tax on upholstered furniture, and 50% in the vanity of kitchen cabinets and bathrooms.

“People couldn’t replace it in their homes for a number of reasons,” says Maggie Kulyk, founder and CEO of Chicory Wealth, a wealth advisory company. “Wages aren’t in line with housing market inflation. And then interest rates have risen. So there are people who are literally locked in. And now they want kitchen cabinets.

What does “pay more” mean? An amendment expert interviewed by USA Today in April estimated that home renovation costs could rise by as much as 25% after the first round of tariffs were unfolded. If there is an additional 50% levy on cabinets and vanity, that estimate could be jacked.

This old home summary suggests that you can get a prefabricated vanity at the low end for just $100 to $2,600, but a custom-built version can cost as much as $2,800. Installations could be hundreds, or even thousands, but as Kulyk points out, many migrant communities that traditionally provided labor for such installations are subject to deportation.

Meanwhile, Angi’s data from Home-Services Company shows that homeowners can expect to spend $6,317 on cabinets on average, but the project can cost as much as $11,044 for just $1,978.

The American producers of kitchen cabinets may be one of the few players happy with the new tariffs. Two industry groups, the American Kitchen Cabinet Alliance and the Association of Kitchen Cabinet Manufacturers, advocate for “at least 100%” tariffs.

In material posted online, the two groups wrote that more than 250,000 American jobs are at stake as countries, including Mexico, Vietnam and Malaysia, bring cheap products from China to the United States.

How strong is the economy?

While the goal may be to reuse American manufacturing and protect domestic jobs, some observers are concerned that these policy procedures are being taken at the expense of moderately-income Americans.

Now, official economic data shows that the American economy is strong and remains resilient in the face of the White House shock and patience tariff policies. Economic Production (GDP) rose 3.8% in the second quarter of 2025, and the Commerce Department said on September 25 that it rose 2.5% due to a 2.5% increase in consumer spending.

However, Kulyk is surprised by recent reports showing that he is a high-end shopper supporting consumer spending. A recent Boston Fed study found a February analysis from Moody’s analysis that found the top 10% of income earners (over $250,000 a year) accounted for half of all spending.

But for everyone else, things are becoming more challenging. Many Americans have fallen in average credit scores, with many struggling to pay off their student loans.

“We live in a very dangerous situation, both politically and macroeconomically,” Kulyk said in an interview. “I think when the rubber hit the road and some of the people who only make $200,000 a year, they realised they thought they had a seat at the table, but now they’re on the menu, so they’re potentially going to see a significant social unrest.”

Tariffs cause “total disruption” in the industry

Meanwhile, in the home-based goods industry, tariffs are causing “complete confusion” according to Barbara Karpf, founder and president of DecoratorsBest, one of the best online suppliers of textiles and wallpapers, according to Barbara Karpf, which is available only to TradeSple.

“Many companies are just canceling or closing many of their products,” Karpf said in an interview. “They sell less products, foreign companies are sticking to products they are in production, some are in transit and they intend to sit in warehouses.”

Even if some companies accept the idea of ​​reusing manufacturing, there is no way to start production in a few months, let alone October 1st. Some of the contacts at KARPF have investigated the possibilities solely to find out that the machines needed are very expensive thanks to previous tariffs. Some have cancelled various product lines, while others have cut down on workers or closed them completely.

Carpf said DecoratorsBest was on track, but they had to plan to hire more workers and other investments.

“I don’t want to oppose some of the mutual tariffs or take money back to the government. I respect the president’s new stance, and I understand that,” she said. “But its randomness and lack of notification, this is not a way to do business. You cannot grow or thrive. I pray you wake up, and there are no other tariff tweets.”

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