The Hidden Cost of Import Tariffs for Interior Design

“We manufacture everything in-house using nearly all domestic materials. A weaker economy is our biggest hurdle—people buying less, with less confidence, makes all business harder.” —Tyler Hays

Are import tariffs affecting material costs?

“In a word: Yes. Even domestic materials are affected, either due to higher demand as others scramble for US-based vendors or because foreign components used by domestic suppliers are tariffed.” —Lordan

“In San Francisco, labor is a much larger cost factor. Tariffs will impact materials, but not as dramatically as in other regions. Our bigger challenge is managing the broader economic uncertainty.” —Skelly

“The price increases are already happening. Our ground cloth [for my fabric line] will raise 10% immediately, plus added shipping. That means eventually I’ll likely have to increase prices, possibly dissuading clients from shopping my line.” —Martyn Lawrence Bullard

“I’ve seen price increases across several categories—case goods, lighting, tile, hardware. It’s hard to know whether it’s tariffs, inflation, or supply issues, but the result is tighter budgets and more cost-conscious clients.” —Soltani

How are you positioning your business to weather price increases?

“It all starts at the proposal stage: Contracts should have safeguards and include specific language regarding potential cost changes or project pauses.” —Tamir Shuster

“We’re exploring ways to help mitigate the cost increases—less expensive shipping options or value engineering—to not scare off clients.” —Bullard

“We’re increasing efficiency with the raw materials and stock we already have, aligning forecasts with partners, and negotiating favorable terms with vendors on minimum orders, payments, and consignment inventory.” —Lordan

Will import tariffs drive up prices for your customers?

“Hopefully not. We remain committed to holding our prices steady, but as a small, family-owned shop, we can only absorb so much before making tough choices.” —Lordan

“We’ll weather these increases without passing them along for as long as we can. But if tariffs stay or increase (as projected), then we’ll need to adjust pricing to stay afloat.” —Bullard

“We’re primarily an auction house now, with our ready-to-ship pieces being sold through our weekly BDDW Auctions. When demand weakens, closing prices drop, which can be great news for clients.” —Hays

Are customers or clients putting projects on hold?

“We’re definitely seeing nervousness.” —Hays

“Not a complete stop, but more caution. Clients are prioritizing essentials, which means I must be more strategic. Value engineering and clearly understanding priorities are key.” —Soltani

“We’ve already had one project back out. Clients were okay with potential cost increases, but the overall uncertainty pushed them to pause.” —Skelly

What actions can you take to recession-proof your business?

“It is important to create plans for different scenarios that involve changes in the expense structure of [your] firm, including both wages and overhead expenses.” —Shuster

“We’re doubling down on fundamentals: exceptional client experiences, strong referrals, and investing in recruiting top talent.” —Skelly

“Being around for 100 years has taught us to plan for the unknown. We’ve survived wars, the Great Depression, COVID—thanks to experience, intuition, and strong vendor and distributor relationships.” —Lordan

“I’m diversifying services, offering flexible fee structures, and building stronger local vendor relationships so I can pivot quickly when imported options become too costly or unavailable. I’m also building a more adaptable, client-focused business model that can withstand fluctuations without compromising design integrity.” —Soltani

How should you react to the import tariffs news cycle?

“Staying informed on fast-moving regulation updates and being plugged into the developments in real time will help businesses react quickly and plan for the short- and long-term future. Resist making drastic moves without weighing the long-term effects, but also avoid sitting idle. Take a wait-and-see approach for now, while preparing contingency plans for various scenarios later on.” —Cassandra Napoli

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