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In the United States, the current administration’s import tariffs are hitting the design industry hard—and this impact is only growing. In addition to a new baseline 10% hike, these levied taxes on foreign goods are currently imposed on specific materials like aluminum and steel (50% as of June 4) as well as on all products from specific countries like China (34% as of May 12), but could climb even higher on July 9 when previously imposed 90-day pauses are set to expire. For example, Canadian lumber could see a 250% import tariff, products from the EU may be taxed an additional 20 to 50% on their journey across the pond, goods from Vietnam could see a 46% tariff, Bangladesh 37%, South Africa 31%, India 27%, and Japan 24%. (As of this week, two federal cases have ruled sweeping tariffs unlawful. The Department of Justice appealed, implementing an administrative stay that will allow the tax levies to persist as the cases make their way through the judicial system.) For designers and builders, this can mean rising costs for furnishings and goods made globally or for using global components, which realistically applies to most of the pieces sourced or custom-made to construct and decorate today’s homes.
Import tariffs are not only rattling business operations, but American architects, designers, builders, and manufacturers are also grappling with rising costs, unpredictable supply chains, and shrinking profit margins—all in an already volatile economic climate. “Tariffs are a very scary reality at the moment,” says AD100 designer Martyn Lawrence Bullard. “The very word has already created havoc in many industries, and ours—the design community—is also gearing up for a rocky road.” With anxiety high all around, how can the design community navigate this uncertain era while maintaining the same level of quality and quantity their clients have come to expect? Adaptability, preparation, and informed decisions are key, says our panel of industry experts, which includes designers in the weeds as well as the pros advising them. “When we think about the eco-anxiety, layered on top of the financial anxiety, layered on top of job security anxiety and just plain old surviving, consumers could be reaching a breaking point,” explains Cassandra Napoli, head of marketing at global consumer trend forecasting firm WGSN. “Speed and flexibility—not panic—will be key. Monitor the trade war, adjust where possible, and work collaboratively to preserve consumer confidence.”
Below, industry experts share how US import tariffs are already affecting their businesses and what they’re doing to stay resilient.
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Our panel:
-Martyn Lawrence Bullard, a Los Angeles–based AD100 designer
-Tyler Hays, founder of BDDW, a New York– and LA–based furniture maker
-Paul Lordan, co-owner of Steele Canvas Basket Corp, a 104-year-old Massachusetts-based manufacturer
-Cassandra Napoli, head of marketing at global consumer trend forecasting firm WGSN
-Tamir Shuster, partner at Precise, a financial management company that works with architecture and design businesses
-Connor Skelly, COO of San Francisco–based design-build company Perez Construction, an AD PRO Directory member
-Banafsheh Soltani, founder of architecture and design studio Bana Design in Edgewater, New Jersey
How do you anticipate the import tariffs will impact your business?
“While I do my best to source locally—both for sustainability and to support domestic vendors—clients sometimes push us toward imports. If tariffs expand, I’ll need to make more strategic sourcing decisions, educate clients about alternatives, and potentially adjust timelines. It reinforces the value of good design over just ‘stuff.’” —Banafsheh Soltani
“The biggest impact of tariffs is the uncertainty they create. When families invest millions in a remodel, economic certainty is critical. Think of it like building on shifting sand versus solid ground.” —Connor Skelly
“We're preparing for the worst by shoring up vendor pricing and being more strategic with inventory. But we’re also optimistic about increased interest in American-made goods. Whether people want to avoid tariffs or support domestic production, we’re hopeful.” —Paul Lordan
“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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