Tariffs and Their Effect on Remodeling in 2025

Is 2025 the right year for your home remodel? With tariffs and economic challenges dominating the headlines this summer, you may be considering pushing the pause button on your big plans. It’s natural to be cautious when you hear that taxes on imported goods like lumber, cabinetry and flooring could be driving up the costs of renovations.

While the economy may feel shaky, there’s good news for homeowners with home improvement on their mind. The impact of tariffs on remodeling may be less than you think — the actual cost increase is roughly 1-2%.

If you’re on the fence about whether this is the year for your renovation journey, let’s explore a few tariff-related factors that could influence costs — and how COCOON can help you move forward with confidence.

4 Ways Tariffs Could Impact Your Home Remodel — or Not

Wondering how tariffs could impact your home renovation? You don’t have to navigate this alone! The COCOON team keeps a close eye on these changes so we can guide you through every step, no matter how the market shifts.

1. On-Again, Off-Again Tariffs

It’s still too early to pinpoint exactly how tariffs will impact remodeling, especially in local communities in the Philly area.

Tariffs are taxes placed on imported goods, and recent policy changes mean that tariff rates have increased on imports from various countries, particularly China, with some adjustments affecting Canada and Mexico. This translates to higher prices on imported materials, such as lumber from Canada or lighting fixtures from China.

We won’t see how the effects of tariffs unfold until well into Q3 of 2025. That’s because recent executive orders have temporarily reduced tariffs on Chinese goods and delayed tariffs on goods compliant with the United States–Mexico–Canada Agreement (USMCA).

No matter what the market does, COCOON will keep you informed every step of the way so you can make well-informed decisions.

2. Working With Domestic Suppliers

Tariffs only impact imported goods. At COCOON, we source most of our materials and essential products right here in the U.S., including high-ticket items like:

• Quartz and solid surface countertops
• Tile for flooring and wall applications
• Premium wallpaper
• HVAC systems

Working with American manufacturers means our remodeling projects are less vulnerable to major price hikes caused by tariff rates.

3. Tariff-Resilient Remodeling Budgets

When our clients express concerns over rising material costs, we respond with confidence that remodeling is still a smart financial move.

When it comes to a renovation project, 67% of the total cost covers skilled labor, design services, project management and other expenses — none of which are affected by international tariffs. Only about 33% of the remodeling budget goes toward materials. So, you’re naturally protected from most tariff-related price swings.

Even if the cost of certain materials rises slightly, the overall impact on your remodel’s total price will be minimal and manageable.

4. Commitment to High-Value Materials

At COCOON, our commitment to high-value materials is unwavering — even in changing economic times. Certain imported fixtures and materials, such as plumbing, lighting and countertops, could see minimal price adjustments. But that’s because our priority remains connecting our clients with the highest quality construction supplies and design materials.

We continue to build long-standing relationships with domestic trade partners and vendors for priority access to stable supply chains. This allows us to source the best materials and craftsmanship, no matter how the market evolves.

Is Now a Good Time to Remodel?

Put simply — yes! Especially with a knowledgeable partner like COCOON. Our 3-stage process transforms uncertainty into opportunity, empowering you to invest in your home at the right time, with the right team. We’re committed to protecting your investment and delivering a beautiful, functional space as we work to minimize the economy’s impact on your budget whenever possible.

If you’re unsure if 2025 is the right time for your remodeling investment, here’s how we help protect your renovation from unpredictable swings in material costs:

• Prompt, precise communication: We guide you through every step and decision to ensure your remodel is a joyful experience.
• Integrated team: You will work with a personalized team of designers and craftspeople who navigate every challenge on your behalf, from permitting to supply chain issues and beyond.
• Smart material choices: Our team expertly manages material selections so you never have to sacrifice design or quality.
• Reliable domestic partners: We prioritize trusted, U.S.-based vendors, helping to protect against global market swings and supply chain disruptions.
• Well-executed outcomes: When you know that your remodel will be completed to the highest standards and add to the happiness and comfort of you and your family, the investment is even more worthwhile.

Start Your Home Remodeling Journey With COCOON

Now is the perfect time to reimagine your space and invest in a home you’ll love for years to come. Even in a world that sometimes feels unpredictable, you can count on COCOON’s process — including helping your remodel stay on track and on budget and guiding you through any challenges or decisions along the way.

We look forward to working out the details of your home renovation. Contact COCOON today to start your journey.