Recent developments in international trade have introduced new tariffs that are poised to impact various sectors, including possibly the cabinetry industry. We will continue to update this post as new developments arise. We will do our best to post updates of newly imposed tariffs and relevant news in the box below.

On February 1, 2025, President Trump signed executive orders imposing significant tariffs on imports from Canada, Mexico, and China. These measures include a 25% tariff on goods from Canada and Mexico and a 20% tariff on Chinese imports and they were initially intended to take effect starting the first week of March, however some of them have been delayed for 1 month.

In addition to these tariffs, President Trump has said that he intends to impose reciprocal tariffs on many more countries starting April 2, 2025. As of this writing there is no information on what these tariffs may be.

Potential Impacts on the Cabinetry Industry

The cabinetry sector relies heavily on imported materials and finished products, making it susceptible to these tariffs. The immediate consequence is an anticipated increase in production costs, which may lead to higher prices for consumers. Specifically, the tariffs on raw materials such as timber and lumber could escalate manufacturing expenses, thereby affecting the overall pricing structure within the industry. Canada is one of the largest lumber exporters and there is not enough in the country alone to support the construction industry. If lumber costs increase, the costs of homebuilding will increase significantly, which could cause a slow-down in demand.

Steel and aluminum are also getting hit with 25% tariffs. This could impact the cost of cabinet hardware, such as hinges and drawer runners as much of the metal used in manufacturing of these components is sourced either from Canada or overseas.

In addition, many miscellaneous organizational accessories and components that are used in kitchen and bath projects, such as trash can pull outs, cutlery trays, closet organizers, etc. come in whole or in part from overseas. These goods received an exemption the last time tariffs were put in place, but as of now, there is no indication they will be exempted again. This could make it more challenging to budget for these extra components that can turn a project from good to great.

While Harbour Series remains our imported and most budget-friendly option, we have spent the last 5 years investing heavily in manufacturing and in sourcing raw goods that are made in the United States and less susceptible to tariffs.

Strategic Responses and Mitigation Measures

HDI Cabinetry is much better positioned to handle this round of tariffs compared to a few years ago, and we are confident that we should be able to navigate through these uncertain times with minimal disruption to our customers. While Harbour Series remains our imported and most budget-friendly option, we have spent the last 5 years investing heavily in manufacturing and in sourcing raw goods that are made in the United States and less susceptible to tariffs. Below is a brief summary of the changes we have made over the last few years and how they will greatly benefit you during this new uncertainty in the marketplace:

Moved manufacturing of Euro Series in-house.

We originally introduced Euro Series in 2014 as an imported product from Italy. The line has grown a long way since then and is continuing to rapidly expand its offering. We are proud to say that Euro Series is now 100% manufactured in-house at HDI Cabinetry, using domestically sourced materials whenever possible.

Click here to learn more about some of the enhancements we’ve made to Euro Series.

Partnerships

Blum and Rev-a-Shelf, both leading domestic sourcing for cabinetry hardware and organizational accessories.

Conestoga Wood Specialties, a leading cabinet door manufacturer.

By partnering with Conestoga Wood Specialties, renowned for their exceptional cabinet doors and wood components, we have transitioned the manufacturing of our Alpine and Milan Expression door styles to the United States. This strategic move enhances product quality and reduces lead times, ensuring more efficient delivery to our valued customers.

EGR Decor, offering a wide range of panel products used for cabinetry doors. Made in California.

We are excited to announce our collaboration with EGR Decor, integrating their premium products—StyleLite and TruNatur—into our cabinetry offerings in the near future. StyleLite provides a flawless, ripple-free acrylic finish ideal for luxury kitchens and bathrooms, while TruNatur offers the authentic look and feel of natural wood with enhanced durability.

HDI Cabinetry is much better positioned to handle this round of tariffs compared to a few years ago, and we are confident that we should be able to navigate through these uncertain times with minimal disruption to our customers.

Specific Considerations for Harbour Series

Harbour Series, known for its quality and affordability, could face challenges under the new tariff regime. Prior to the President’s first term, Harbour Series was sourced in China. At the time, the consumer market could not sustain a 25% tax, plus an additional 200% because of AKCA claims on this product. It was a painstaking process, but we were able to successfully navigate away from China and into Vietnam. Presently, there are no tariffs set for Vietnam, but there is a chance this may happen and if it does, HDI may be forced to pass all or some of the tax on to our customers in the form of a surcharge.

To navigate these challenges, several strategies are under consideration:

1. Diversifying Supply Chains: Exploring alternative suppliers from countries not subject to the new tariffs can help mitigate cost increases. By sourcing materials from different regions, we can reduce dependency on any single market and stabilize production expenses.

2. Enhancing Domestic Production: Investing in domestic manufacturing capabilities may offset the reliance on imported materials. This approach not only aligns with potential shifts toward reshoring but also supports local economies and reduces exposure to international trade fluctuations.

3. Optimizing Operational Efficiencies: Implementing lean manufacturing principles and optimizing operational processes can help absorb some of the increased costs. By improving efficiency, we can maintain competitive pricing without compromising on quality. Our Operations Manager is Lean certified and has been working tirelessly in helping us to improve our operations, while simultaneously helping us grow as a manufacturer.

4. Adjusting Pricing Strategies: While we strive to keep our products affordable, slight adjustments in pricing may be necessary to sustain business viability. Transparent communication with customers about these changes will be essential to maintain trust and loyalty.

Conclusion

The introduction of new tariffs may present challenges for the cabinet industry and for some of our product, in particular, Harbour Series although much is currently uncertain. However, through proactive strategies such as supply chain diversification, domestic production enhancement, operational optimization, and thoughtful pricing adjustments, we aim to continue delivering quality products to our customers. Staying informed and adaptable will be key as we navigate this evolving landscape together.