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Tariffs trickle down to remodels

URGENT: Tariffs trickle down to remodels- UPDATED

Dear Poulin Design Center Customer,
You may be aware that the federal government announced a tariff of 10% on certain flooring, countertop, kitchen cabinets, and raw material products imported to the U.S. from China, set into effect on September 24, 2018. In November of 2018 we took steps to hold pricing for you and many of you took advantage of it.

We understand that the second round of tariffs, originally schedule for January 1, 2019 have been delayed until March 1, 2019. If they are enacted, we fully expect to experience increases from our manufactures.

Because of the 2018 tariff, not only have we experienced price increases already, but we are seeing a second round of increases starting February 1, 2019.

Below is a list of the manufactures that have announced price increases, which will take effect as of February 1, 2019:

  • Kitchen Cabinets: Bellmont, Bertch, Omega, R.D. Henry- 8-12%
  • Flooring: Armstrong, Shaw, US Floors- 19%
  • Coutertops– Quartz- 19%
  • Plumbing Fixtures: Moen, Delta, Kohler- 12% increase

We value our relationship with you, and therefore we are taking a number of steps to mitigate the impact of this tariff on our product pricing where possible. If you have recently purchased a remodel project from us, your price is locked in- there will not be any change. If you have received a quote from us but have not purchased your remodel project yet, your price will be good until February 15, 2019.
We will be increasing our prices effective February 15, 2019. However, we are absorbing the tariff impact until February 15. After which, all of the affected product prices will increase.

Most of our products are assembled and manufactured in the United States. However, many of the components are shipped to the U.S. from China.

There are some products that are manufactured and exclusively made in the United States. We are also experiencing a price increase for theses products for the transportation and shipping, and increase in labor rates. These increases are also being passed on to us from the manufacturers.

While increased prices due to the imposition of the tariffs are unavoidable, we are taking every step we can to reduce the impact to our customers. In my 36 years as the owner of Poulin Design Center, the speed at which these price increases are happening is unprecedented. Our team stands ready to work with you to provide the best remodeling solutions.

For further reading on the tariff, see articles below:

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Flooring, Including LVT, on Final Chinese Tariff List

Washington, DC, September 18, 2018–On the evening of September 17, the United States Trade Representative (USTR) published a list of Chinese imports to be tariffed; vinyl flooring (including LVT), ceramic tile, engineered hardwood and carpet are included on that list (vinyl, 3918.10.10; ceramic, 6907.21.10 to 6907.40.90; enginneered hardwood, 4418.73.10 to 4418.79.01; carpet, 5701.10.13 to 5705.00.20).

“In accordance with the direction of President Trump, the additional tariffs will be effective starting September 24, 2018, and initially will be in the amount of 10%,”the official release reads. “Starting January 1, 2019, the level of the additional tariffs will increase to 25%.”

As expected, the tariffs impact approximately $200 billion worth of Chinese goods and reports that the tariffs are levied, “As part of the United States’ continuing response to China’s theft of American intellectual property and forced transfer of American technology.”

“The list contains 5,745 full or partial lines of the original 6,031 tariff lines that were on a proposed list of Chinese imports announced on July 10, 2018. Changes to the proposed list were made after USTR and the interagency Section 301 Committee sought and received comments over a six-week period and testimony during a six-day public hearing in August. USTR engaged in a thorough process to rigorously examine the comments and testimony and, as a result, determined to fully or partially remove 297 tariff lines from the original proposed list. Included among the products removed from the proposed list are certain consumer electronics products such as smart watches and Bluetooth devices; certain chemical inputs for manufactured goods, textiles and agriculture; certain health and safety products such as bicycle helmets, and child safety furniture such as car seats and playpens.”

read more: here

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The White House in Washington DC

Tariffs May Raise Remodeling Costs

The Trump administration’s new $200 billion in tariffs are starting to flow through the home improvement sector. Products that could be affected include nails, flooring, granite countertops, tiles, sinks, roofing, cement, paints, cabinets, wooden and steel doors, windows, lighting and appliances. The National Association of Home Builders recently released a list of 6,000 items on the list of goods imported from China that are now subject to tariffs. The list includes 463 “ubiquitous” parts and pieces of the renovation puzzle that account for $10 billion in construction and remodeling expenditures a year nationwide.

The Chinese and Canadian tariffs are not the only ones worrying builders and remodelers. The administration has also imposed 25 percent tariffs on steel imported from many countries and 10 percent tariffs on aluminum. According to a study by Freedonia Group, a market research firm, these tariffs are affecting prices on “most indoor and outdoor kitchen appliances” to varying degrees based on how much steel or aluminum they use. They include stoves and ranges, ovens, refrigerators, freezers and gas grills, among others.

Together, according to Freedonia, they “have the potential to upend a product market that accounted for more than $18 billion in sales in the U.S. in 2016.” Sales could “slump as consumers decide a new fridge or stove isn’t worth the price.”The sobering bottom line: The tariff war is on. Building and remodeling are being affected, and the costs to consumers could go even higher soon.

read more : here

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China United States Trade

Chinese Tariffs Act as a $1 Billion Tax Hike on Housing, Could Jump to $2.5 Billion

President Trump’s decision yesterday to escalate the trade conflict with China could wind up imposing a $2.5 billion tax increase on residential construction at time when builders are already grappling with higher housing costs.

Trump announced he is moving immediately to impose 10% tariffs on an additional $200 billion worth of Chinese imports, including $10 billion of goods used by the home building industry. This 10% levy represents a $1 billion tax increase on residential construction. Making matters even worse, the tax hike will rise to $2.5 billion on Jan. 1 when the president said the tariff rate will jump to 25% if the two nations have not resolved their differences by year end.

If China retaliates, Trump has vowed to place tariffs on an additional $267 billion worth of imports — a move NAHB has strongly opposed.

Responding to this action, NAHB Chairman Randy Noel issued the following statement noting the effects this will have on the housing market and urging the White House to change course:

“President Trump’s decision to impose 10% tariffs on $200 billion worth of Chinese imports, including $10 billion of goods used by the residential construction sector, could have major ramifications for the housing industry. With housing costs on the rise, this action translates into a tax increase on housing that will rise even more significantly on Jan. 1 when the tariff rate jumps to 25 percent.

“Further, this tax increase is coming on top of the current 20% tariffs on softwood lumber imports from Canada. The lumber tariffs have already added thousands of dollars to the price of a typical single-family home.

“With America facing a housing affordability crisis, it is counterproductive to enact policies that will needlessly drive up the cost of housing. We respectfully urge the administration to change course and work to resolve these trade disputes in a manner that won’t harm American businesses and consumers.”

NAHB has been leading the charge to urge the Trump administration to resume trade talks with Canada. It is imperative to find a long-term solution to this trade dispute that will ensure American home builders and consumers have access to a reliable supply of softwood lumber at reasonable prices.

At NAHB’s urging, 171 House members sent a letter to the administration in June urging the United States to re-start softwood trade negotiations with Canada.

And in another effort spearheaded by NAHB, 12 Democratic and Republican senators sent a joint letter to Commerce Secretary Wilbur Ross and U.S. Trade Representative Robert Lighthizer last week urging the administration to resume lumber trade talks and find an equitable solution that will satisfy all sides.

NAHB continues to work on all fronts to find solutions that will ensure a lasting and stable supply of lumber imports into the United States at a competitive price.

View NAHB’s analysis on how the Chinese tariffs will impact the housing sector.

For more information, contact David Logan at 800-368-5242 x8448 or Alex Strong at x8279.

source : http://nahbnow.com/2018/09/chinese-tariffs-act-as-a-1-billion-tax-hike-on-housing-could-jump-to-2-5-billion/

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Tariff tax on Remodeling products – Significant price increase, Act NOW

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You may be aware that the federal government has now announced a tariff of 10% on certain flooring, countertop, and raw material products imported to the U.S. from China, effective on September 24, 2018, with an increase to 25% effective January 1, 2019.

For many of our manufacturers including, Arizona Tile, cabinet companies, counter top manufactures, Armstrong, Shaw, Dal-Tile, Emser, US Floors, Indus Parquet and others, this tariff will impact Luxury Vinyl Tile (LVT), rigid core luxury vinyl planks, engineered hardwood, laminate, carpet, carpet padding, tile, stone, cabinets, quartz and granite counter tops, plumbing fixtures and products that are imported from China. Additionally, several of the manufacturers are experiencing increases in transportation expenses from the trucking and shipping companies who service their products.

We value our relationship with you, and therefore we are taking a number of steps to mitigate the impact of this tariff on our product pricing where possible. If you already have received a quote from us your price will be good until 11/15/2018. Call us to schedule your start date.

We will be increasing our prices to offset the imposed 10% tariff on affected products imported from China – including LVT, rigid core, carpet, tile, laminate, stone and engineered hardwood, cabinets, counter tops, plumbing fixtures – effective November 15, 2018. The manufacturers are increasing our costs on all shipments to us effective October 1, 2018.  However, we are absorbing the tariff impact on products shipped to until November 15, 2018.  After November 15, 2018, all of our product prices will increase 10%.

Most of our products are assembled and manufactured in the United States. However, many of the components are shipped to the U.S. from China.

We expect to implement an additional price increase, to be effective January 1, 2019, for the increased tariff amount announced.

There are some products that are manufactured and exclusively made in the United States. These products will also experience a price increase for the transportation and shipping increases that are being passed on by the manufacturers.

While increased prices due to the imposition of the tariff are unavoidable, we are taking every step we can to reduce the impact to our customers. Our team stands ready to work with you to provide the best remodeling solutions.

Please contact us TODAY to have us come out and review your remodeling needs so that we can get your product ordered prior to the increases.  You can contact me at: tpoulin@poulinremodeling.com or call our call center at 505-880-2500.  You can also book an appointment online at www.PoulinDesignCenter.com.

We look forward to working with you!

Design Center

Founded 36 years ago by Tom Poulin CGR, Poulin Design Remodeling, Inc., has become a mainstay of Albuquerque home renovation.

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Contact Information

Poulin Design Center

  • 8600 Pan American Fwy NEAlbuquerque,
    NM 87113
  • 1300 Rufina Cir
    Santa Fe, NM 87507
  • (505) 880-2500
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