How Tariffs Will Impact Your DIY Projects and Home Improvements in 2025

With new tariffs on imports from China, Canada, and Mexico now in effect, homeowners and DIY enthusiasts are facing a significant shift in pricing for materials and tools. A 20% tariff on Chinese goods and 25% on Canadian and Mexican imports means that everything from lumber to appliances to power tools will cost considerably more in the coming months. Understanding which products will be affected—and how to adapt your home improvement plans—is crucial for managing your budget effectively in 2025.

"To be prepared against these rising costs, homeowners should plan ahead, compare prices and adjust budgets accordingly," says Pelin Pekgun, a researcher at Wake Forest University School of Business. "While prices will not rise immediately, higher material costs, potential shortages and supply delays could result in tighter renovation budgets in the coming months."

Why Tariffs Cause Prices to Rise

When governments place tariffs—extra fees on imported goods—businesses typically pass those costs directly to consumers. But the impact extends far beyond the initial product price.

"Tariffs are like a hidden tax that families pay," explains George Carrillo, CEO of the Hispanic Construction Council. "Imagine your family is shopping for a new microwave. If tariffs are added, that $100 microwave might now cost $120. The extra $20 isn't going to the store; it's covering that fee the company had to pay just to bring the product into the country."

The effects compound because tariffs on raw materials affect finished products. A tariff on aluminum impacts prices for appliances, tools, vehicles, and building materials made with aluminum. Similarly, tariffs on fuel increase shipping costs for everything delivered locally or nationally.

"It's all part of a chain reaction," says Carrillo. "When companies pay more for goods or parts, those increases trickle down into higher prices for everything from cereal to car repairs. For families, it's a reminder that even distant policies can show up right in your shopping cart or monthly bills."

Lumber: The Most Significant Impact

One of the most dramatic price increases homeowners will face involves lumber. The pending 25% tariff on Canadian lumber is expected to raise wood product costs by 15% to 25%, meaning a sheet of plywood could jump from around $30 to approximately $50.

"I was forced to submit three home remodeling budget revisions last month because of premature tariff notifications, which raised the price of lumber by nearly 20%," says Erik Wright, founder and CEO of New Horizon Home Buyers. "A customer's deck rebuild went from $6,400 to almost $8,000; a bitter increase for a family that simply needed to create safe outdoor areas for their children."

For those planning deck construction, fence installation, or other lumber-intensive projects, consider these alternatives: shop at local sawmills, switch to composite or eco-minded U.S.-made materials like Trex and Acre, and reclaim or reuse wood when possible.

Metals: Building Materials and Tools

Canadian and Mexican aluminum and steel tariffs of 10% to 25% will likely increase costs for appliances, tools, plumbing, and electrical components by 10% to 30%. These same tariffs will drive up prices for aluminum windows, doors, gutters, exterior trim, metal roofing, and solar panels.

"Automotive DIYers could also feel the sting, with the cost of imported brake pads potentially rising from $50 to $75 per set and imported power tools like drills increasing by 15 to 20%," says Carrillo. "Many of my colleagues and industry peers are saying that immigration policy changes and deportations could lead to worker shortages and increased labor costs."

To mitigate these costs, repair old tools rather than replacing them, and get creative with alternative materials, such as switching to vinyl windows instead of aluminum.

Vehicles and Auto Parts

With steel and aluminum tariffs increasing, the cost of new cars, work trucks, and auto parts will rise substantially. General contractor Josh Riutta notes that higher vehicle costs will likely increase contractor fees as well. "We rely on our trucks for everything," explains Riutta, owner of Mikku and Sons Roofing. "When truck prices go up, service costs increase too."

If you've been considering purchasing a vehicle, buy sooner rather than later. Stock up on frequently used auto parts ahead of time, or source reliable secondhand parts from salvage yards.

Energy Costs: Electricity and Gas

Energy bills may climb by 5% to 10% if tariffs raise the cost of imported oil or gas. Propane, however, likely won't be affected significantly since it's primarily produced in the U.S.

Tariffs also indirectly affect energy costs through increased delivery expenses. If tariffs on steel and aluminum drive up infrastructure costs, those expenses eventually filter to consumers' electricity and gas bills. Additionally, trade disputes triggered by tariffs can create volatility in energy markets.

"Focus on energy efficiency in your home, like sealing windows, adding insulation and switching to a programmable thermostat," suggests concrete specialist Bill Bencker. These improvements will help offset rising energy costs while reducing your consumption.

Electronics: Smart Home and Appliances

Mexico assembles a significant portion of consumer electronics used daily in American homes. A tariff on Mexican goods will push prices up on televisions, computers, and smart home devices. Financial analyst Michael Schmied warns that homeowners planning upgrades should expect to pay $100 to $300 extra per item, depending on the brand.

"Electronics are a big one," says Schmied. "Mexico assembles so much of what we use every day, so a tariff will push prices up on things like TVs, computers and even smart home devices."

Additionally, many electronics—especially lithium batteries—come from China, so the 20% Chinese tariff will further increase prices on those items. If you're planning to upgrade your home security system or purchase a new energy-efficient refrigerator, expect significantly higher costs.

Textiles and Furniture

People often overlook how much home furnishings and textiles come from China. A 20% tariff means mattresses, bedding, curtains, and couches will all become more expensive.

"You might see an $800 sofa jump to $950, or premium bedsheets go from $100 to $120," explains Schmied. "If you're furnishing a whole house, that adds up fast."

If you're planning to replace furniture or bedding, shop now before prices increase substantially.

Appliances: Kitchen and Laundry

Appliances are especially vulnerable to tariffs because modern supply chains often cross borders multiple times during assembly. Even American-made dishwashers, refrigerators, and water heaters typically have components manufactured elsewhere.

"Appliance prices will likely jump between 10% and 25% with the new tariffs," says Jonathan Palley, CEO of Clever Tiny Homes. "Manufactured goods are especially vulnerable to tariffs because, thanks to modern supply chains, they often cross the border multiple times during the assembly process."

If you need a new appliance, consider purchasing it now before prices rise. Otherwise, explore used options or focus on repairing existing appliances.

Landscaping Materials and Equipment

Lumber-dependent landscaping projects—like decks, fences, and raised beds—will cost more due to Canadian tariffs. Additionally, tariffs on Chinese-made landscaping equipment like lawnmowers, light kits, and sprinkler heads will increase prices further.

"I don't see any other way except for us to pass on those costs to our customers," says Todd Hendricks, owner of Louisville Landscape Pros. "And if the tariffs persist, these increases might get to be quite substantial."

Plan landscaping projects carefully, and consider alternatives like native plantings that require less maintenance equipment.

Drywall and Concrete

More than 25% of cement and concrete are imported from Canada and Mexico, making foundation pouring and flatwork projects like driveways and walkways significantly more expensive. Mexico supplies over 70% of American drywall, a material with few substitutes in modern construction.

"A tariff on this material would translate directly to increased building costs, as this material is standard practice in today's construction and doesn't have a simple substitute," says ADU builder Paul Dashevsky.

Other Building Materials

Flooring, cabinets, countertops, lighting, and specialty items like imported tiles will all increase in price. An imported tile backsplash, for example, could grow from $15 per square foot to $20, adding hundreds to renovation budgets. However, buying domestic brands can help you sidestep these price increases entirely.

"Homeowners planning renovations need to understand that every single element of their project is at risk of becoming more expensive," says Ryan Whitcher, Founder and CEO of Harmony Home Buyers. "Cabinet hardware, lighting fixtures, countertop materials—it all adds up quickly. What might have cost $15,000 six months ago could easily cost $18,000 or more today. The key is to prioritize which upgrades matter most and focus your budget there."

HVAC Systems: Air Conditioning and Heating

Many AC unit components are manufactured in Mexico before being shipped to the U.S. for final assembly. HVAC specialist Vanessa Ferrara, owner of Ferrara's Air in Florida, reports that manufacturers and distributors are already increasing prices by 20% to 25%.

"As an air conditioning contractor in south Florida, we have already been informed that our manufacturers and distributors are increasing their prices by 20% to 25% as a result of these tariffs," says Ferrara. "Coupled with supply chain challenges, homeowners will see shortages in availability and severe price hikes."

Repair costs will also increase since many parts are imported. General contractor Justin Cornforth notes that many so-called "American manufacturers" actually have significant portions of their components either made in China or assembled in Mexico using Chinese parts.

Labor Costs: The Indirect Impact

Though not a direct consequence of tariffs, labor costs are rising in the construction industry. Immigration policy changes and potential worker shortages could lead to increased labor rates.

"Many of my colleagues and industry peers are saying that immigration policy changes and deportations could lead to worker shortages and increased labor costs," says Michael Green, founder and CEO of Alternative Roofing. "I also expect deployment timelines to stretch by two to three months as supply chains adjust and manufacturers rework new trade options."

Insurance: A Hidden Cost Increase

Car, home, and business insurance policies are increasing because materials and replacement costs are rising. When repair costs increase due to tariffs, insurers adjust their rates accordingly.

"I had a client who was rear-ended, and the body shop quoted nearly 30% more than the same repair would have cost last year because parts are more expensive due to tariffs on imported materials," explains attorney John Beck. "When prices go up, insurers adjust. Some providers are hiking rates across the board, assuming customers won't push back."

How to Adapt Your Home Improvement Plans

To prepare for and manage the financial impact of tariffs

:

Plan ahead and lock in prices. Get materials now and secure contractor bids before prices increase further. Brandon Hardiman, Owner of Yellowhammer Home Buyers, strongly recommends this approach: "Don't wait on home improvements you're already planning to do. Lock in your contractor bids now while prices are still more stable. Every week you delay, costs continue climbing. I've seen homeowners who postponed projects just a few weeks end up paying thousands more. The time to act is now."

Plan ahead and lock in prices. Get materials now and secure contractor bids before prices increase further.

Buy domestically sourced materials. American-made products won't be subject to import tariffs.

Consider alternative materials. Switch to composite decking instead of lumber, vinyl windows instead of aluminum, or domestic tile options.

Invest in efficiency now. Energy-efficient appliances and improved home insulation will offset rising energy costs long-term.

Avoid large projects with uncertain timelines. Projects that stretch over months could see multiple price increases before completion.

Focus on maintenance and repair. Fix and maintain what you have rather than replacing it.

Look for refurbished and second-hand options. Used appliances and recycled building materials can save money.

Stay informed about trade policies. Keep up with changes to stay ahead of the curve and make informed decisions.

Build relationships with local suppliers. Local businesses often have better inventory and flexibility than big-box retailers.

Don't accept predatory practices. Beware of contractors using tariffs as scare tactics to rush you into contracts or artificially inflating prices with spurious surcharges.

"Many building supply houses have one to six months of inventory on hand, and international suppliers often have even longer lead times," explains kitchen distributor Michael Neal. "This means they likely have non-tariffed products in stock currently."

The Bottom Line

While tariffs will undoubtedly increase the cost of home improvement projects and materials, informed planning and strategic choices can help you minimize the impact. By acting now, considering alternatives, and focusing on efficiency and maintenance, you can navigate these changes successfully.

"Basically, it's about being smart and adaptable," says Bill Bencker. "We're all in this together, and by being prepared, we can weather the storm."