How Tariffs Impact Remodeling & ADU Costs

If you're planning to remodel your home or build an ADU, you’ve probably been watching prices rise over the past few years — and one factor that continues to affect construction costs is tariffs.

Tariffs are taxes placed on imported goods, and they affect a wide range of materials used in home construction — including lumber, steel, aluminum, tile, appliances, fixtures, and even cabinetry. Whether you're updating a kitchen, adding a bathroom, or building a new structure in your backyard, chances are that part of your project will involve materials affected by these tariffs.

So what does this mean for homeowners working with a general contractor? Let’s break it down.

1. Material Costs Are Going Up

Tariffs make imported goods more expensive, which puts pressure on suppliers, distributors, and ultimately the contractors who purchase those materials. For example:

• Cabinetry and countertops often come from overseas factories. Tariffs on wood products or quartz can increase costs by 10–25%.

• Steel and aluminum used in framing, supports, or even window and door frames may become more expensive due to import taxes.

• Electrical components, lighting fixtures, and plumbing parts are frequently sourced internationally — and subject to changing costs.

Even if some materials are made in the U.S., prices still rise due to increased demand when buyers shift away from imports. As a result, homeowners may see quotes that are 5–15% higher than what they expected just a few years ago.

2. Some Projects Take Longer to Complete

With shifting tariffs and supply chain adjustments, certain materials can take longer to arrive. This is especially true for specialty items like:

• Custom vanities or cabinets

• Imported tiles or flooring

• HVAC systems or appliances

At First Round Construction, we work hard to stay ahead of delays by recommending reliable suppliers, confirming availability before we begin, and helping clients choose smart alternatives when needed. But it’s important for homeowners to know: the earlier you start planning, the better. This gives us time to lock in pricing and reserve materials before they go up or sell out.

3. Budgeting and Planning Are More Important Than Ever

When working with a general contractor in today’s market, transparency and planning are key. Homeowners should ask:

• Are material costs fixed in the estimate?

• How will price changes be handled if they occur mid-project?

• Are there alternative options for materials to help stay on budget?

At First Round Construction, we guide our clients through these questions early in the process. We’ll help you understand where costs are firm, where they might fluctuate, and how to adjust if needed — without sacrificing quality.

4. Smart Design Choices Can Help Offset Costs

Tariffs may be out of your control, but design flexibility gives you power. For example:

• Choosing a standard cabinet size instead of custom can save weeks of wait time and hundreds of dollars.

• Swapping out an imported tile with a domestic alternative can reduce both cost and delivery risk.

• Reusing existing layouts (especially plumbing and electrical) where possible can dramatically cut labor and material expenses.

This is where having an experienced general contractor makes a big difference. We help homeowners make smart trade-offs without compromising their vision — keeping your dream project both achievable and beautiful.

5. Why Now May Still Be a Good Time to Build

You might be wondering, “Should I wait until prices go down?” That’s a fair question — but here’s the reality: material prices have been steadily rising over time, and there’s no clear sign that tariffs will be lifted in the near future.

In fact, labor costs are also increasing, and many cities are offering ADU incentives, rebates, and streamlined permits right now. So even if materials cost a bit more, there are still long-term savings to be had by acting sooner rather than later.

At First Round Construction, we believe in making the process simple, honest, and efficient. Whether you’re looking to build an ADU for rental income or remodel your kitchen to create more space, we’ll work with you to plan ahead, choose smart materials, and get the job done on time and on budget.