How Tariffs Could Impact Your Home Renovation | WSJ


(gentle music) – Lighting, 15% increases. Flooring, 10 to 25% if
the tariffs go forward. This glass door is going up 10%. – [Jason] George Abi
Habib’s remodeling business in San Diego is bracing
for the new abnormal. 25% tariffs being composed by the US on 200 billion dollars in Chinese goods, up from 10% last year. Many materials used in home building and remodeling are included. – We build a lot of things like granite. Those are gonna be sourced from China. – [Jason] Small business
owners like Abi Habib are worried that potential clients, due to the tariffs on Chinese goods will balk at soon-to-come
higher price quotes. – It takes a long time for customers to adjust to the new
reality of what things cost. And in the meantime, we
have very large overhead and about 50 staff that we need to ensure have continual work. – [Jason] His concerns are two-fold, that many homeowners will
put off major improvements, like getting a new kitchen, and that, to attract potential clients, he’ll need to reduce his profit margin. – You’re in a position
where you could be losing 20 or 30% of your net profits
at the end of the year. – You’re eating some of
the cost, in other words. – Definitely, if we can’t pass
on all of it to the customer, we end up eating it ourselves. The alternatives for these
are much, much more expensive when they’re made in the States. – [Jason] Abi Habib
says his clients prefer higher-end products,
manufactured in America. – Supplier says. – [Jason] But even from these suppliers, he’s receiving ominous emails. – They thank us for our business, and they say that our industry is under unprecedented
pressure due to tariffs, and we’ve waited as long as we can for possible price increases
due to these tariffs. So this is an American cabinet line, but this built on engineered wood, part of the Chinese supply chain. – [Jason] To give us a better idea of what the new China tariffs
will mean for customers, Abi Habib takes us to a work site. – This is the 75000 dollar kitchen. So yeah, as you can see,
this was a complete gut job. – [Jason] Abi Habib
says because of the new increased tariffs, he’ll need to charge for a renovation like this
one, 6000 dollars more than he did a year ago. – 6000 dollars on a 75000 dollar kitchen is a very big increase. – Is it a deal-breaker? – It is definitely a deal-breaker. – One of the impacts of the tariff is not simply the price increase, but also the delay in investment, and the delay in investment
will come from consumers, for example, delaying a home remodel. – [Jason] Renee Bowen, a professor of international trade policy at the University of California San Diego, says the tariffs could be
damaging to the US economy. – It’s a big deal, it’s going
to affect US consumers a lot. – Now you’ve been
studying tariffs and trade for decades now, right? – Correct. – Have you seen anything quite like this? – Never seen anything like this. I’ve been having to rewrite
my classes essentially. The United States would like to think that China will be more
hurt by the US tariffs than the US will be hurt
by the Chinese tariffs, but that’s to be determined. – I think it’s gonna
turn out extremely well. We’re in a very strong position. – [Jason] The Trump administration is also taking steps to
impose fresh 25% tariffs on nearly 300 billion dollars in Chinese goods that
aren’t currently taxed. – I think this is a risk
we should and can take without damaging our economy
in any appreciable way. – [Jason] The Trump administration hopes that ultimately a deal with China will be reached that
benefits US producers. – There may be more made in America as a result of the tariffs. Consumers now are forced to purchase from domestic producers, who
have higher prices naturally, while producers are
enjoying this welfare gain, consumers are losing. – [Jason] This tile and
flooring store in San Diego primarily serves customers
who’ve got tighter budgets. – This is our wood-looking
luxury vinyl plank, which is one of the most
popular items nowadays. – [Jason] And where’s it from? – This product is actually
a Chinese product. Even with the tariff
increases on these products and anything out of China,
they’re still gonna be less expensive than an
American-made product. – Even with the 25% tariffs? – That’s correct. – The trade war is bad news for everyone, but particularly the middle class and lower-income Americans. – Lower-income Americans. – Lower-income Americans benefit from the very cheap products
that are coming from China. – So let’s head down
over to the warehouse. – [Jason] Veronica Terriquez says about 90% of the products her
company sells come from China. – So if you take a look here, you will see made in China here, made in China. – [Jason] Terriquez says she’s nervous. – I, as a manager, have to worry about, for instance, my staff’s
jobs, our company. – [Jason] When the first round of tariffs on Chinese goods hit last fall, she says sales dropped off
pretty much immediately. – We’re talking about 33%. – So a third less sales. – Exactly right. – Well, and you’re confident that it’s because of the tariffs. – Uh, yes, the store was
just very, very busy, and it came to a screeching halt. – As soon as the tariffs hit. – As soon as the tariffs hit. – [Jason] And the new increase round is expected to hit soon. – Goods that are already in transit will not be subject to the tariffs. – [Jason] But goods being
loaded on ships in China now will have to pay the
tariff when they arrive. – So, we will see a small delay in the impact of these
tariffs, about two weeks. – But the tariffs are
literally on their way. – Correct, the tariffs are
literally on their way. (gentle piano music)

64 thoughts on “How Tariffs Could Impact Your Home Renovation | WSJ”

  1. Most manufacturing will be done in America.God Bless America, Buy American HIRE American ?? stop being a MASS consumer☠️. Be Practical ❤️?

  2. Good job Trump the crisis manufacturer ….
    First he shut down the government
    Now he shut down the economy ….
    God bless American

  3. How much dollar does American lives cost…

    Save some dollars that can cost American Soldiers lives after ALL THESE CHINA BUSINESS are able to build ALL the WARSHIPS , FIGHTER PLANES and AMMUNITION…

    If everyone does not wake up NOW…

    YOU ALL FINANCED the BULLET that will KILL TONS of AMERICAN SOLDIERS they will use ALL THEIR BUSINESS EARNINGS to…

    TURN AROUND NOW…

    BEFORE IT’s TOO LATE…

    THERE’s A PLAN…

    THERE ARE OTHER COUNTRIES to do SUCCESFUL BUSINESSES….???

    https://youtu.be/LvtTqjYUTmY

  4. American crony capitalism can only be destroyed by itself from the inside. China will thank Trump for doing that. Now you know all American companies are just agents of US government. China will ban US technologies in the future due to national security risks. Now all the countries in the world know US will use US technologies as weapon.

  5. Dear Wall Street Journal,
    The way I see it.
    If you're house is made out of bamboo..
    ?
    Panda will come eat it! ?
    ?? ?
    My mom always said:
    "You're eating me out of house and home"
    Peace ✌

  6. Trump will go down in US history as the worst President ever. He is a pathological liar and an economic ignoramus.

  7. Why are products made in the usa so expensive if we drop locally produced products then there is no problem

  8. But we're getting SOOOOOOO much money from China from all the tariffs, so don't worry. Just close your eyes, bend over, and everything will be juuuuuust fine. ?

    FYI: I'm selling bridges, real cheap. So…..

  9. Tariffs are taxes. I thought taxes were bad? Why did Trump increase taxes 25%? No more tariffs because they are taxes on freedom. Why do Trump supporters love taxes so much?

  10. As with all economic policy put forth by Republicans, the party is in lock step. Free trade is bedrock of Conservative thinking, yet where is the outcry in Republican circles? The same goes for subsidies; all well and good for our approved recipients, along with the enormous deficit and national debt, nary a mention since Trump's electoral college victory. Pity the next president if he happens to be a Democrat; January 21, you will hear: TREASON! DEFICITS! DEBT! PROTECTIONISM! Sadly, ever has it been thus.

  11. 75000.00 for a kitchen? Don't think I'll be in that market better yet the middle class won't be shopping there.

  12. beans .50
    pack of chicken. 2.00
    2.50×30 65.00 grocery bill.
    water fruits cereal 100. month. live within you means
    2

  13. $75K for a kitchen remodel??!!!! We know that neighborhood…Its a middle class area and there is no way a kitchen should cost that much! We renovate entire homes for what they are charging! Never pay retail and always get at least 3 quotes before you decide to go with a contractor!

  14. The US government will collect these tariffs, in Chinese this is called 剪羊毛 or 割韭菜. Both sides (supplier & consumer) take the loss. Only winner is the US gov.

  15. Next story: How everything being made in China makes it hard for Americans to afford renovating their homes with no jobs.

  16. This tarrifs war revealed the ugly truth that the whole world , not just the US alone tried to unsee for a long time , is that China made the world rely heavily on her without preparing a plan b for such days .it shows how big and dangerous this"empire" really is. For that professional in the video it is possible to source the hardware from other countries that offer a similar price to that of the Chinese without the risk of loss. I mean common there are countries out there in the globe other than China. ?

  17. Imports should pay taxes like products that are produced in the United States. Congress in its idiocy essentially penalizes products made here.

  18. The tariffs are there to extract money from Americans….cause we're broke.

    My theory but please educate me below. I want to understand this better.

  19. a small price to pay for the enormous amount of money the Chinese have been stealing for decades….ask the American genius that have lost trillions on intellectual property

  20. So should the tax payers have had to pay for the trade imbalance through government borrowing to pay for your business that the US has a trade imbalance with.

  21. The only thing we need to do is stop subsidizing the shipping of goods from China to the US, tarrifs are worthless: they only hurt consumers.

  22. False news… corrupt corporations raising prices on goods sold to smaller owned companies who are also being taxed to death by state governments. Florida, California, Washington, Ohio,
    Pretty much every democratic state.
    Which is why you have higher prices higher taxes, high poverty, high crime
    Get a clue it is not trump or tarrifs it is state socialist stealing your future while pocketing billions of your money…..

  23. I know I won't be buying any major appliances. I wont give a 25 % to the government, in the form of tariffs!

  24. They should show all these little towns ,that have been destroyed by trade with China in the Mid West!!

  25. So what? Take great care of what you have. Stop wasting. Repair. Stop shop binging . Instead of being stuping consumers become sustainable carers of what you own

  26. News today reported the average household is going to pay out almost $850 thanks to Drumph’s tariff taxes.

  27. This is just an opportunity for some American entrepreneur to replace the Chinese products. A lot of the products being sold in home remodeling used to be made in the USA prior to the opening of China in 1972. I have an older home built in 1955…..which has most of the original materials like cabinets, sinks etc. All were made in the USA. Give it time, we will be making those products soon.

  28. So the person who is putting in a $75 kitchen has to pay a little more to help low and middle income blue collar Americans get a job in manufacturing? And the complaint is….what?

  29. This is what winning looks like.
    A middle class that saw no wage increases from the economic recovery now has to pay for the tariffs.

  30. I really dont like china product breaks fast, their is no point of paying 2000 labor to put a floor of 500 dolars material, if it will brake in a blink of an eye.

Leave a Reply

Your email address will not be published. Required fields are marked *