Are new home buyers finally getting a break on increased tariffs? It looks that way.
In September 2025, the White House imposed a 25% tariff on kitchen cabinets, furniture, and vanities, with tariffs on furniture products slated to rise to 30% at the beginning of 2026. Kitchen cabinet and vanity tariffs were scheduled to double to 50% on the first day of the year.
However, at the beginning of January, United States President Donald Trump announced his administration would be delaying rising tariffs on furniture, such as upholstered pieces, bathroom vanities, and kitchen cabinets until 2027.
Why it matters: Furnishing a new home is often the first major expense after closing. In addition, items such as kitchen cabinets and bathroom vanities are essential components of the house, even at the base model level. These items can represent multiple thousands of dollars during the design phase of a new build, and hiked tariffs would have driven costs up even further.
“The Trump administration's decision to delay tariffs on furniture can only be welcomed,” said Robert Khachatryan, CEO of Freight Right Global Logistics. “Had [the tariffs] been implemented as planned, the effects of them following through would only compound the emerging affordability issues in the US that end-user consumers are pressed with every day.”
Why the Delay? Administration May be Anticipating Lawsuit Loss
During the announcement of the delayed tariffs, the White House said the delay is in part due to “ongoing productive negotiations” regarding the imports of wood products.
However, Khachatryan suspects that the delay may be due to the administration’s suspicions that they could lose the International Emergency Economic Powers Act (IEEPA) tariffs case with the Supreme Court. The suit alleges that Trump unlawfully invoked the Act. If the Court rules against the government, Trump’s administration may owe businesses as much as $168 billion in collected tariffs revenue.
“The read-between-the-lines of the decision to delay, however, can also be seen as the Trump administration expecting to lose their IEEPA tariffs case with the Supreme Court,” Khachatryan said. “Implementing new tariffs while the case is rapidly approaching a conclusion would be a spectacularly brazen display of power.”
What New Home Buyers Should Do Now
1. Lock in furnishing plans sooner rather than later
With tariffs on furniture, kitchen cabinets and vanities holding at 25% until at least Jan. 1, 2027, buyers have a clearer pricing window to plan major purchases without an imminent cost spike.
2. Prioritize essential built-ins first
Focus budgets on non-negotiables such as kitchen cabinets and bathroom vanities, which are core components of the home and most vulnerable to future tariff changes.
3. Ask builders how tariff stability affects pricing
Buyers of new construction should confirm whether builders are adjusting upgrade pricing or material allowances now that sharper tariff increases are off the table for the moment.
4. Avoid delaying purchases based solely on hopes of lower prices
The tariff delay does not eliminate duties; it only postpones increases. Waiting for significant price drops may not pay off, especially if supply chains tighten again.
5. Watch legal and policy developments closely
Ongoing legal challenges to the administration’s tariff authority could affect future pricing outcomes. Buyers should stay informed, especially before committing to large custom orders.
6. Budget conservatively despite short-term relief
While the delay offers breathing room, broader housing affordability pressures remain. Buyers should treat current stability as temporary, not guaranteed.
Bottom Line
The decision to delay higher tariffs may give new home buyers some short-term cost stability when it comes to furnishing and finishing their homes, particularly for essential items like cabinets and vanities. However, the move does little to address the broader housing affordability challenges facing buyers, from high home prices to rising living costs. For now, the policy should be viewed as incremental relief. It’s helpful at the margins, but far from a game-changer in an already strained housing market.
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