How the Latest Tariff Hike Affects Construction Material Costs (And What You Can Do About It)
Rising material costs are coming—will your business be ready? With a 20% tariff hike now in effect, the construction industry is facing yet another financial squeeze. But there’s still time to act before prices climb even higher.
In a move that is shaking up the construction industry, the U.S. has imposed a 20% tariff on Chinese imports, significantly increasing the cost of building materials. This two-step increase—10% in February, followed by another 10% in March—has already begun to impact flooring, cabinetry, and other essential construction supplies.
For contractors, developers, and homeowners, this shift means one thing: rising costs and shrinking profit margins. But with the right strategy, businesses can minimize the financial impact and stay ahead of market fluctuations. In this blog, we’ll break down how these tariffs affect construction material pricing and, more importantly, what you can do to protect your bottom line.
1. Understanding the Recent Tariff Increase
The latest tariff hike is a direct response to ongoing trade tensions, and its effects are already being felt. On February 1, 2025, the U.S. implemented a 10% tariff on all Chinese imports. This was followed by an additional 10% increase on March 4, 2025, bringing the total tariff to 20%.
Why does this matter? China is one of the largest suppliers of construction materials, providing everything from plywood and flooring to cabinets and hardware. With a tariff of this magnitude, prices are expected to rise across the board as suppliers adjust their costs.
Key Takeaways:
✔ Materials imported after March 4 will reflect the full 20% tariff increase.
✔ This increase will lead to price hikes for builders, contractors, and homeowners.
✔ Supply chain disruptions and stock shortages could make matters worse.
2. The Immediate Impact on Construction Material Costs
Tariffs don’t just affect importers—they trickle down through the entire industry, impacting construction costs, project budgets, and consumer prices.
Which Materials Will Be Affected?
While not all materials are imported from China, a significant percentage of cabinets, flooring, and raw materials come from Chinese manufacturers. This means that:
- Cabinet prices could increase as manufacturers adjust to higher import costs.
- Flooring materials, such as engineered hardwood and luxury vinyl planks (LVP), may see price jumps.
- Raw materials like plywood, MDF, and adhesives could become more expensive.
What This Means for Construction Businesses
Contractors and developers will need to adjust project budgets, while homeowners planning renovations may face higher costs for materials. With construction season ramping up, demand is increasing—but so are the costs.
✔ If you wait too long, you could end up paying significantly more.
3. Why Acting Now Can Save You Money
If history has taught us anything, it’s that tariffs don’t just affect material costs—they also influence supply and demand. In 2018, a similar tariff hike led to widespread price increases, with some suppliers raising prices beyond the actual tariff amount.
The good news? FMD Distributor has a strong inventory of construction materials that are still available at pre-tariff prices. Stocking up now means locking in lower costs before the next wave of increases hits.
✔ Once the current inventory is gone, new shipments will reflect higher prices.
✔ Tariffs tend to create panic buying, leading to shortages and price hikes.
✔ Acting early ensures that your projects stay on budget.
4. Smart Strategies to Navigate Rising Costs
Stock Up on Essential Materials
The most straightforward way to avoid price hikes is to buy materials now. If you have upcoming projects, consider purchasing key materials in advance to secure lower costs.
Plan for Price Increases in Bids and Contracts
If you’re a contractor, be proactive—factor in rising material costs when submitting bids. Many contractors got caught off guard in 2018 when prices jumped overnight.
Work with Trusted Suppliers
Not all suppliers handle tariff hikes the same way. Some inflate prices, while others, like FMD Distributor, work to keep costs fair. Choosing the right supplier can make a major difference in your bottom line.
✔ Tip: Ask suppliers about their current stock levels and if they have materials that are still available at pre-tariff prices.
5. How FMD Distributor is Supporting Clients
At FMD Distributor, we understand that rising costs can put pressure on your business. That’s why we’re committed to keeping our pricing fair and transparent.
Here’s How We Help:
- Strong Inventory: We have a wide selection of cabinets, flooring, and building materials ready to ship.
- Fair Pricing: Unlike some suppliers, we don’t take advantage of tariff increases to boost prices beyond necessity.
- Fast Shipping: Secure your materials now before tariffs drive costs even higher.
Conclusion
With the 20% tariff now in effect, material prices are on the rise. But that doesn’t mean you have to take a financial hit. By acting now, stocking up on key materials, and working with trusted suppliers, you can protect your budget and keep your projects on track.
Don’t wait—contact FMD Distributor today to secure your materials before prices rise even further!
