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How Tariffs Will Affect Interior Designers in 2025 and Beyond

How Tariffs Will Affect Interior Designers in 2025 and Beyond

Have you been paying attention to the “tariff war” and thought about how it will affect your business? Tariffs may not have previously been on your radar, but it’s important to become aware and informed. As the CEO of your business, you need to remain updated about not only internal but also external events that can affect your business. 

So, what are tariffs? Tariffs are taxes that are charged on goods purchased from other countries. Often, they are a percentage of a product’s value. Even if you purchase from a resource in the US, some or all of the products they represent may be manufactured in other countries. Or even if the products are manufactured in the US, some or all of the raw materials used to manufacture those products may be purchased from other countries. These additional costs may be invisible, as their costs are folded into the final prices that you see.

How might tariffs affect your business?

Rising costs of products and materials

As most interior designers are in the business of specifying or selling products and materials to clients, you could be affected by tariffs.

From 2023 numbers, NAHB estimates that $184 billion worth of goods were used in the construction of multifamily and single-family housing. They estimate that $13 billion of those goods were imported from outside the US. Of that number of imports used in residential construction, 27% came from China, 11% from Mexico and 8% from Canada. Stay informed as to the tariff agreements with these countries, especially during volatile times in which they may change.

Vendors that bring foreign goods into the US must pay the tariff tax to the government. So, a 10% tariff will mean a $1000 product will have a $100 tax on top, leading to a total cost of $1100. Most likely they will pass some or all of the additional cost on to customers–meaning you. 

Consequently, you will then need to decide whether to pass the additional cost on to your clients. These increased costs may affect products but also materials you incorporate into nearly every project. Materials such as hardwood, stone, metal may all be affected. Think in terms of flooring, kitchen and bath finishes, cabinetry, etc. In addition to the financial impact tariffs may have, some companies may also decide to import fewer goods.

Use this possible challenge as an opportunity to check with your sources and see exactly how they might be affected and what their plans are. The country-by-country tariff pause could be an opportunity for businesses to prepare for what may come. Have your sources done so?

Rising costs or the fear of that possibility may affect how your clients decide to approach their project. They may become more cautious in their spending. They may scale down their plans or even postpone them. Be proactive and prepare to offer them options and solutions. Be a partner in their design decisions, not a spectator. Your approach to these challenges will make an impression on your clients. Even if they scale down or postpone, they may become loyal clients if you advocate for their projects.

Price of luxury items may increase

A large number of high-end appliances, plumbing fixtures, and lighting elements come from Germany, Japan and South Korea. So keep your eyes on tariff discussions with these countries. 

Do your research and find out what kind of inventory your sources may have.

How might you keep the quality of your design while adapting to rising costs? Clients often are more interested in why a particular item costs more than another in comparison. This is an opportunity to highlight the difference and why investing in higher quality for certain pieces over others is worthwhile in the long run. 

You experienced the challenges of an unstable supply chain during the pandemic. You may regularly advise clients of possible long lead times, but unpredictable tariff agreements may increase the uncertainty of project completion. Depending on the amount of imported product included in your projects you may need to discuss with your clients whether to wait it out or redesign and offer other solutions. You need to be prepared, and prepare your clients, that once again, supply chain delays may slow down your projects.

Effects on the supply chain

The tariff challenge is fluid, but be proactive and prepared. Develop a plan for how your firm will address the effects of the tariffs on your projects. 

Meet with your clients to discuss how the tariffs might affect their project and their budget and share how you are prepared to address this challenge.

Possibly more domestic sourcing

Along with the possible challenges that tariffs may create, they also may offer the opportunity to rethink your sourcing. If you have not already, begin to research American-made products and materials. You may find new sources that are as good as, or possibly better than imported materials and products you have been sourcing. 

Remember that a key trait of a great designer is the ability to find solutions. Be willing to be flexible and open to new options. You need to realize that you probably won’t be able to find exact replacements for what you have sourced from Europe or Asia.

You problem-solve every day in this business so be flexible and open your mind to expand your design choices. Though you may not find the exact finish or product you planned to use, be open to the idea that you may find new possibilities that are even better. Sometimes you may find you get comfortable with specific sources and don’t explore new ones. Look at this as your opportunity to do so. 


The impact of tariffs on the design industry is not clear-cut. And the situation is fluid, as is the timeline. Use the challenge posed by these tariffs as an opportunity to showcase your firm as being adaptable. Become known as a firm that is proactive and stays ahead of the various shifts in the market. Promote your ability to find creative solutions for sourcing that set you apart from the competition. Finally, by maintaining clear communication with your clients and sources, you can create an opportunity to build strong relationships and generate lifelong ideal clients.

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