Latest news with #ChadEsslinger
Yahoo
27-05-2025
- Business
- Yahoo
Pressure building for homeowners as renovation industry gets hammered by supply chain chaos thanks to tariffs
Tariffs are hammering the home renovation industry, pushing designers, contractors and homeowners into a financial crunch as rising costs create chaos in the supply chain. Chad Esslinger, an interior designer based outside Chicago, says the pressure has been building ever since President Donald Trump introduced sweeping global tariffs in early April. Costs have been creeping up for Esslinger, telling CNN that one key supplier, providing lighting, rugs and furniture, slapped a 14% 'temporary tariff surcharge' on Chinese imports and 2% on goods from any other countries starting May 12. Another vendor dealing in fabric and wallpaper also warned of imminent price hikes. Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) 'I've seen it where sometimes they don't even warn you,' he said. 'I've gone to a website to look at a product I might have sourced a month ago, and now suddenly it's a certain percentage more.' To survive, Esslinger says the price hikes can't be absorbed; they have to be passed on. 'Just like everything,' he said, 'you have to pass that cost along if you want to stay profitable.' The home renovation market has thrived in recent years, bolstered by an aging housing stock and fewer new builds. But that growth is being threatened by U.S. trade policy. In 2024, China exported more than $438 billion worth of goods to the U.S., with nearly 19% of that total in machinery and appliances, including refrigerators, dishwashers, laundry machines, and another 4% in furniture and lighting, according to the U.S. International Trade Commission. A recent agreement between the U.S. and China has temporarily lowered that rate to 30% for 90 days, but the broader market remains unsettled. Blanket 10% tariffs remain in effect for many other trading partners, and those rates could climb again after July 9. 'It's top of mind at this point. On the contractor side, they're waiting to see how it unfolds,' Julie Kheyfets, CEO of Block Renovation, a platform that connects homeowners with contractors, told CNN. 'The thing about renovations is, every renovation is different. You can't stock a bunch of extra materials ahead of time, because every homeowner wants something different.' That uncertainty has made it harder for businesses to plan and for customers to commit. The U.S. home remodeling market is still expected to grow in the coming years, according to fresh projections from the National Association of Home Builders (NAHB). The NAHB forecasts a 5% increase in residential remodeling activity for 2025, showing resilience in the face of economic and trade policy volatility. The growth, they say, is being driven by factors like aging housing, high home equity levels and an aging demographic. But despite the projections, professionals like Esslinger say the lack of clarity is causing delays. 'The word that just keeps coming up is uncertainty,' he said. 'I've had some clients say they're going to hold off for a little bit and see how things go, while some have scaled back a little bit.' Not everyone is seeing the same level of impact. Nina Sepiashvily, who runs I&N Builders in New York City, says that while she's noticed a slight uptick in costs, it's nothing compared to the price surges triggered by post-pandemic inflation. Her focus is more on structural materials like lumber, rather than imported furnishings. Tariffs on Canadian lumber, a key import for the U.S., sit at 14.5%, but the U.S. Department of Commerce has proposed more than doubling that rate to 34.5%. 'We haven't really seen [tariffs] affect our costs yet,' Sepiashvily said, 'Homeowners are uncertain about tariffs, they're uncertain about their investments and they're afraid to pull the trigger.' But in New Mexico, interior decorator Sandy Schargel experienced the ripple effects firsthand when a lighting company canceled a large order due to tariff-related product discontinuations. Replacement options came with a 10% markup. Schargel says the loss of access to more affordable imported items means she now often looks to American-made alternatives in a shift that may drive up costs for budget-conscious clients. 'When you come to the lower price points, American-made does limit things, somewhat,' she said. 'Imported merchandise often has lower price options.' She's now telling her clients to buy early. 'I've told people to order what they need as soon as possible to avoid prices going up further down the line,' she said. As for Esslinger, he hasn't seen any price relief. 'No home goods importers I work with have said they plan to lower prices,' he said. Read more: This is how American car dealers use the '4-square method' to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs If you're planning a home renovation in 2025, you're likely feeling the squeeze of rising material costs and ongoing tariff volatility. But, with the right strategy, you can still make your dream remodel a reality without blowing your budget. Here are four ways to protect your wallet and stay on track: Renovation costs can escalate quickly in today's market. Experts recommend adding a 15% to 30% contingency to your budget to account for unexpected costs, like price hikes in materials. Use budgeting tools, whether spreadsheets or apps, to monitor every dollar spent and keep your project from spiralling out of control. Global supply chains remain unpredictable, and tariffs are making some imports pricier than ever. You can choose U.S. lumber or steel, which tend to be less tariff-sensitive. You can also work with local suppliers to cut down on shipping costs. Renovations are a big-ticket item, but there are smart ways to finance them, like home equity lines of credit (HELOCs), home equity loans, which offer fixed-rate options or personal loans, if you have strong credit and want to avoid tapping into home equity. Don't settle for the first contractor you meet. Make sure to get multiple bids and ask for itemized estimates to see exactly how much is being allocated to materials, labor and overhead. This can help you spot markups, negotiate better rates and make informed comparisons. While the pause in the highest tariffs offers some relief, many in the home renovation business are preparing for continued volatility. Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
CNN
14-05-2025
- Business
- CNN
Planning to renovate your home? That may soon cost more from tariffs
Costs have been creeping up for Chad Esslinger, who runs an interior design business outside of Chicago, ever since President Donald Trump first announced sweeping global tariffs in early April. One business Esslinger often relies on to provide light fixtures, rugs, furniture and all manner of wholesale home goods for clients implemented a 'temporary tariff surcharge' of 14% on all goods from China and a 2% charge on items imported from any other country beginning on May 12. Another business that provides fabric, wallpaper and trim emailed Esslinger to say it would re-evaluate its pricing strategy on May 15. 'I've seen it where sometimes they don't even warn you. I've gone to a website to look at a product I might have sourced a month ago, and now suddenly it's a certain percentage more,' Esslinger said. 'Just like everything, you have to pass that cost along if you want to stay profitable,' he added. For the last few years, the home renovation space has been booming, but Washington's ever-shifting tariff policies threaten to change that. That's because the US imports billions of dollars worth of home goods from around the globe, from Tuscan tilework to Chinese refrigerators. Those products, along with raw construction materials, have been hit by Trump's tariff agenda. Professionals in the home renovation space, from decorators to general contractors, told CNN their businesses have been bracing for higher prices since President Donald Trump first announced tariffs on imports from most countries in early April. Though Trump has temporarily placed many of the largest tariff increases on pause, high tariffs remain in effect, and uncertainty about future costs persists, many said. 'It's top of mind at this point. On the contractor side, they're waiting to see how it unfolds,' said Julie Kheyfets, the CEO of Block Renovation, an online platform that connects contractors with homeowners. 'The thing about renovations is, every renovation is different. You can't stock a bunch of extra materials ahead of time, because every homeowner wants something different.' Some home goods have already been pulled from the market entirely due to sharp changes in tariffs. Sandy Schargel, an interior decorator from Albuquerque, New Mexico, was recently informed that thousands of dollars in light fixtures she had ordered for a client were no longer available, due to tariff-induced discontinuations. By the time she was notified, alternative options from the same lighting company had all risen 10% in price. Schargel told CNN that if she can no longer access some imported products, she would turn to American-made alternatives, which may add costs for homeowners. 'When you come to the lower price points, American-made does limit things, somewhat,' Schargel said. 'Imported merchandise often has lower price options.' Schargel said she has encouraged clients on tighter budgets to order what they need as soon as possible to avoid prices going up further down the line. China is one of the largest exporters of home goods to the US. In 2024, the country sent more than $438 billion worth of goods into American homes. Nearly 19% of that total was machinery and mechanical appliances, such as refrigerators, dish washing machines and laundry machines, according to data from the US International Trade Commission. Furniture, bedding, lamps and lighting were a further 4% of last year's imports from China. For a little more than a month, the 145% tariff Trump placed on imports from China vastly eclipsed tariffs on other nations' imports. However, on Monday, the US and China agreed to lower tariffs on each other – a positive step in trade relations between the two countries after tensions had ratcheted up in the last few weeks. For at least 90 days, most imports from China will be taxed at 30%. Blanket 10% tariffs are also in place with most other US trading partners, though higher rates could kick back in on July 9. It is too early to tell whether the pause in the highest tariffs on China will reverse price hikes and shortages. Esslinger said so far this week, no home goods importers he works with have said they planned to lower prices. Earlier this year, a report from the National Association of Home Builders estimated that the remodeling industry is poised for growth amid an aging housing stock. As fewer new homes have been built in the last decade and fewer Americans move, homeowners would be more likely to renovate their older homes, the report said. Esslinger, the interior designer from the Chicago area, along with other home renovation professionals CNN spoke to, said tariff whiplash was slowing down business, though. 'The word that just keeps coming up is uncertainty,' Esslinger said. 'I think some folks just don't feel super confident. I've had some clients say they're going to hold off for a little bit and see how things go, while some have scaled back a little bit.' But not everyone in the home renovation space has felt the full impact of tariffs yet. Nina Sepiashvily, who runs I&N Builders, a New York City-based construction company, said that while she may have noticed a slight increase in prices so far, it pales in comparison to the soaring prices she experienced in the years after the start of the pandemic, when inflation began to take off. As a construction company owner, she generally doesn't handle buying finished goods like appliances and furniture, but rather handles purchasing building materials, like lumber. Although the US imports a significant percentage of lumber from Canada, the additional tariff increase on that import hasn't yet taken effect. The tariff on lumber currently sits at 14.5%, but the US Commerce Department has signaled it plans to hike tariffs on Canadian lumber by more than double, to 34.5%, in the coming months. 'We haven't really seen (tariffs) affect our costs yet,' Sepiashvily said. But while clients are still interested in planning renovations, many aren't ready to move forward yet, she added. Homeowners are 'uncertain about tariffs, they're uncertain about their investments and they're afraid to pull the trigger.'
CNN
14-05-2025
- Business
- CNN
Planning to renovate your home? That may soon cost more from tariffs
Costs have been creeping up for Chad Esslinger, who runs an interior design business outside of Chicago, ever since President Donald Trump first announced sweeping global tariffs in early April. One business Esslinger often relies on to provide light fixtures, rugs, furniture and all manner of wholesale home goods for clients implemented a 'temporary tariff surcharge' of 14% on all goods from China and a 2% charge on items imported from any other country beginning on May 12. Another business that provides fabric, wallpaper and trim emailed Esslinger to say it would re-evaluate its pricing strategy on May 15. 'I've seen it where sometimes they don't even warn you. I've gone to a website to look at a product I might have sourced a month ago, and now suddenly it's a certain percentage more,' Esslinger said. 'Just like everything, you have to pass that cost along if you want to stay profitable,' he added. For the last few years, the home renovation space has been booming, but Washington's ever-shifting tariff policies threaten to change that. That's because the US imports billions of dollars worth of home goods from around the globe, from Tuscan tilework to Chinese refrigerators. Those products, along with raw construction materials, have been hit by Trump's tariff agenda. Professionals in the home renovation space, from decorators to general contractors, told CNN their businesses have been bracing for higher prices since President Donald Trump first announced tariffs on imports from most countries in early April. Though Trump has temporarily placed many of the largest tariff increases on pause, high tariffs remain in effect, and uncertainty about future costs persists, many said. 'It's top of mind at this point. On the contractor side, they're waiting to see how it unfolds,' said Julie Kheyfets, the CEO of Block Renovation, an online platform that connects contractors with homeowners. 'The thing about renovations is, every renovation is different. You can't stock a bunch of extra materials ahead of time, because every homeowner wants something different.' Some home goods have already been pulled from the market entirely due to sharp changes in tariffs. Sandy Schargel, an interior decorator from Albuquerque, New Mexico, was recently informed that thousands of dollars in light fixtures she had ordered for a client were no longer available, due to tariff-induced discontinuations. By the time she was notified, alternative options from the same lighting company had all risen 10% in price. Schargel told CNN that if she can no longer access some imported products, she would turn to American-made alternatives, which may add costs for homeowners. 'When you come to the lower price points, American-made does limit things, somewhat,' Schargel said. 'Imported merchandise often has lower price options.' Schargel said she has encouraged clients on tighter budgets to order what they need as soon as possible to avoid prices going up further down the line. China is one of the largest exporters of home goods to the US. In 2024, the country sent more than $438 billion worth of goods into American homes. Nearly 19% of that total was machinery and mechanical appliances, such as refrigerators, dish washing machines and laundry machines, according to data from the US International Trade Commission. Furniture, bedding, lamps and lighting were a further 4% of last year's imports from China. For a little more than a month, the 145% tariff Trump placed on imports from China vastly eclipsed tariffs on other nations' imports. However, on Monday, the US and China agreed to lower tariffs on each other – a positive step in trade relations between the two countries after tensions had ratcheted up in the last few weeks. For at least 90 days, most imports from China will be taxed at 30%. Blanket 10% tariffs are also in place with most other US trading partners, though higher rates could kick back in on July 9. It is too early to tell whether the pause in the highest tariffs on China will reverse price hikes and shortages. Esslinger said so far this week, no home goods importers he works with have said they planned to lower prices. Earlier this year, a report from the National Association of Home Builders estimated that the remodeling industry is poised for growth amid an aging housing stock. As fewer new homes have been built in the last decade and fewer Americans move, homeowners would be more likely to renovate their older homes, the report said. Esslinger, the interior designer from the Chicago area, along with other home renovation professionals CNN spoke to, said tariff whiplash was slowing down business, though. 'The word that just keeps coming up is uncertainty,' Esslinger said. 'I think some folks just don't feel super confident. I've had some clients say they're going to hold off for a little bit and see how things go, while some have scaled back a little bit.' But not everyone in the home renovation space has felt the full impact of tariffs yet. Nina Sepiashvily, who runs I&N Builders, a New York City-based construction company, said that while she may have noticed a slight increase in prices so far, it pales in comparison to the soaring prices she experienced in the years after the start of the pandemic, when inflation began to take off. As a construction company owner, she generally doesn't handle buying finished goods like appliances and furniture, but rather handles purchasing building materials, like lumber. Although the US imports a significant percentage of lumber from Canada, the additional tariff increase on that import hasn't yet taken effect. The tariff on lumber currently sits at 14.5%, but the US Commerce Department has signaled it plans to hike tariffs on Canadian lumber by more than double, to 34.5%, in the coming months. 'We haven't really seen (tariffs) affect our costs yet,' Sepiashvily said. But while clients are still interested in planning renovations, many aren't ready to move forward yet, she added. Homeowners are 'uncertain about tariffs, they're uncertain about their investments and they're afraid to pull the trigger.'
