Trade Wars, Tariffs and Taxes, OH MY

Just in case you haven’t noticed the world will end soon, right after the economy crashes due to trade wars and such. At least, that’s what some would have you believe. Recently I’ve had several conversations about the impact of trade wars and tariffs on the remodeling industry. From what I can tell, much ado about nothing.

Forgive me for getting all mathy on you, but here goes. On 6/20/24, almost a year ago, my cost for a 2x4 was $3.48, a sheet of drywall was $11.38. In February of this year, 2x4 was 3$3.48 and drywall was $16.48. Today, a 2x4 is $3.83 and a sheet of drywall is $11.88. From a year ago to today, my cost for one 2x4 and one sheet of sheetrock has changed by a total of $0.90, or 6%. There are similar cost fluctuations in other construction commodities as well, but I don’t want to bore you completely. Bottom line, a $10,000 job a year ago should cost $10,600 or so today.

Yes, prices have changed but not greater than inflation. In this market we have seen no impact from all the hysteria about trade wars and such. I can’t explain why in detail, although I suspect we get more of our lumber from Louisiana and Oregon than from Canada – that might not be true for the country as a whole, but for this market it seems to be. Even the commodities from China are beginning to flow again. I recently read an article claiming that warehouse inventories overall were at their highest level since pre-covid. All of this indicates that building material price increases are unlikely to outpace inflation in the foreseeable future.

Don’t let anyone try to charge you extra because of the hype. At Old Glory, we bid time and material and show you our costs – nothing hidden. If you are dreaming about that new bathroom or kitchen or whatever, check into it. Find a contractor you can trust and make those dreams come true.