If you’ve paid attention to the headlines lately, you’ve likely seen a lot about tariffs. For those who are not in the know, a tariff is a tax or duty that a government imposes on imported or exported goods. The Trump administration has made promises to implement tariffs on goods from Canada and Mexico, as well as on aluminum and steel.
Most people never consider these 4 financial moves — and they’re leaving thousands on the table.
Some economists and financial experts have expressed concern about the potential economic impact of these tariffs, which the White House has said will help address issues like immigration and curbing fentanyl in the U.S. But there’s also growing concern about the potential hardships they could impose on everyday citizens — from your friendly neighborhood contractors and home repair experts, to you, the consumer of their services.
Contractors and other home repair professionals are worried about increased costs for materials and tools due to these tariffs. Their warning to homeowners is clear: get your home repair projects done now, before the tariffs take effect and prices rise.
Installing a Heat Pump
Though Robert Hamerly, principal and CEO at GreenSavers, has seen news reports suggesting homeowners hold off on buying a heat pump, he argues that impending price hikes related to tariffs make now the best time to get one.
“Newly announced tariffs on imported goods, including heat pumps, will drive up prices in the coming months,” he said. “Homeowners who delay upgrades will likely pay more when they finally make the switch.”
Hamerly, a home performance and HVAC contractor with over 17 years of experience, points out that upgrading to a heat pump can save homeowners hundreds of dollars on their energy bills every year, making it a smart investment. He also notes that people who live in older homes, with systems that have outlived their typical lifespan of 15 to 20 years, may face costly repairs. That makes it all the more important to act now, before tariffs spike prices even higher.
For instance, Hamerly estimates that a Panasonic ducted heat pump currently going for $14,000 could rise to over $15,750. A Mitsubishi multi-zone heat pump currently priced at $22,500 could increase to more than $25,312.
HVAC Projects
Heat pumps aren’t the only HVAC (heating, ventilation, and air conditioning) systems that could become more expensive due to tariffs.
Justin Cornforth, owner of Ace Home Co., explains why homeowners may have to shell out more on these projects: “[Tariffs] indeed will raise the prices and therefore expenses on different tools and products, because the amount of the imported products are huge. Most people don’t even realize that many manufacturers describe themselves as ‘American manufacturers,’ but in reality, a significant portion of their components are either made in China or assembled in Mexico using Chinese parts.”
Cornforth predicts that tariffs on Chinese goods will almost certainly increase HVAC equipment prices in the U.S., as manufacturers will likely pass higher costs down to distributors, contractors, and ultimately, homeowners. Given that replacement parts like compressors, circuit boards and sensors are imported, Cornforth expects HVAC repairs and installation will become more expensive as well.
“Homeowners and businesses may rush to replace HVAC systems before prices increase further,” Cornforth said. “This could cause temporary shortages and even higher prices due to demand.”
While Cornforth believes the HVAC supply chain will eventually adjust, he points out that the change won’t happen instantly. He recommends getting quotes from multiple contractors, since some may lock in current prices for a limited period, while others may raise their prices preemptively.
In the meantime, if you need a new air conditioner or furnace, Cornforth advises purchasing it now rather than later. As for other projects involving HVAC, whether it’s repairs, replacements, ductwork, insulation or smart thermostat installations, you might want to keep an eye on price changes.
Projects Involving Lumber
Jeremy Yamaguchi, CEO of Lawn Love, knows a thing or two about yard projects, like the fact that a lot of the lumber used in these projects comes from Canada.
He advises anyone planning a home repair or renovation project involving wood — such as patching a deck, building a wood shed, or replacing wood fencing — to finish up before the cost of lumber could “potentially skyrocket.”
Retirees are earning up to $1K extra income per month from home — here’s how you can, too.
Yamaguchi is far from alone in his concerns. Carl Harris, chairman of the National Association of Homebuilders, weighed in with the organization’s fears about the impact on homeowners and builders: “Tariffs on lumber and other building materials increase the cost of construction and discourage new development, and consumers end up paying for the tariffs in the form of higher home prices.” While building a new fence may not be on the same scale as building a new home, Harris’s worries about the rising cost of lumber are still valid for contractors and homeowners alike.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
More From GOBankingRates
- How Middle-Class Earners Are Quietly Becoming Millionaires -- and You Can, Too
- I'm a Financial Advisor: My Wealthiest Clients All Do These 3 Things
- 4 Financial Steps Most People Never Consider -- and It's Costing Them
- 4 Financial Goals Suze Orman Says You Should Have Achieved By Age 50
This article originally appeared on GOBankingRates.com: I’m a Contractor: 3 Home Repair Projects To Finish Before Trump’s Tariffs Hit
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
