Lately, it’s been hard to scroll on your phone or watch the evening news without reading or hearing about tariffs.
The subject is quite contentious, and it has triggered excitement in some and dread in others. Some people have eagerly embraced the implementation of tariffs, while others argue that they are actively sparking a trade war that will have devastating economic implications.
The situation is very confusing and leaves many homeowners and professionals in construction wondering one simple thing: What will this do to the hardwood flooring industry? Given that imports made up approximately 52.8 percent (Source: Flooring Covering Weekly) of the total U.S. floor coverings dollar supply in 2022, it’s an important question.
We’ll dive into the issue below, but first, let’s take a step back and discuss the basics.
What Are Tariffs?
Tariffs are essentially taxes that can be placed on imported or exported goods.
Currently, the tariffs being discussed are import taxes, meaning that (from an American perspective) additional fees are placed on goods arriving in the U.S. from Canada. Some import tariffs are narrow and target only a given product or category of products, while others include all imported goods.
Importantly, it is the party importing the goods who pays these tariffs. In other words, if you are an American who wants to purchase $100 worth of Canadian widgets, the 25% tariff means you’ll actually have to pay $125 for them.
The Current Tariff Situation: What’s Happening Between the U.S. and Canada?
In February, the U.S. imposed a 25% import tax on all Canadian goods, which caused Canada to respond in kind.
Negotiations and discussions between the two governments continue, and the situation remains very fluid. Both parties have threatened additional tariffs at various times, with some targeting specific industries and others being broader in scope.
As of this moment (March 12, 2025), the U.S. has paused these tariffs until early April, but Canada has left their import tariffs in place.
How Will Tariffs Impact the US-Canadian Hardwood Flooring Industry?
The U.S. and Canada both produce timber and finished hardwood floors, which means that the trade of both hardwood floors and the raw materials used to make them is quite complex. This isn’t a simple situation with a one-way flow of goods or money.
In fact, some goods involved in the manufacture of hardwood floors cross the border twice. For example, some Canadian mills will import raw materials from the U.S., turn them into finished flooring products and then export them back across the border.
This all makes it difficult to make sweeping generalizations about the impact tariffs will have, and the only thing certain is uncertainty. However, a few things are likely to happen:
Supply chains will be disrupted.
Until recently, tree farmers, manufacturers, and retailers in both countries traded amongst themselves and utilized efficient supply chains. But because import tariffs imposed by either country change the economics of these relationships, supply chain disruptions are essentially guaranteed.
Businesses will adapt over time and the hardwood flooring industry will survive. But there will be some chaos involved as parties at every level of the industry will have to assess and potentially change the partners they buy from or sell to.
Overall trade volume will be reduced.
If tariffs are enacted for any length of time, the overall amount of hardwood floors and raw materials crossing the border will likely decrease.
This will occur in part due to the supply chain disruptions discussed above, but also as a result of farmers, manufacturers, and retailers shifting their approach to international sales — they may start focusing more on domestic markets in an effort to sidestep the market volatility triggered by the tariffs.
The domestic trade in flooring and materials within each country may rise in response, but that’s not guaranteed. Rising prices may reduce the overall amount that consumers spend on hardwood floors or materials.
The competitive landscape will shift.
The hardwood flooring industry isn’t a monolithic force – it’s comprised of thousands of individual entities, who’ll all react to the changing economic environment in different ways.
Some tree farmers and manufacturers may be forced to alter their pricing structures to adapt. They may have to offset a reduced demand by increasing the prices they charge. Meanwhile, manufacturers and retailers may have to alter their inventories as some timber species become more difficult (i.e. expensive) to source.
It is also possible that some timber species hailing from regions that are not subject to import tariffs will become more popular with consumers. The prices for these products are likely to increase if raw material is not indigenous to the region, other wood species may become more attractive to buyers.
Consumers will pay higher prices.
While there is tons of uncertainty surrounding the impact of import tariffs on the US-Canada hardwood flooring market, one thing is unfortunately likely: Consumers will see higher prices.
We don’t yet know exactly how the tariffs will impact the hardwood floor trade between the U.S. and Canada. There are a number of possibilities, and it is unlikely that they will all come to fruition. However, most of the possibilities are rather bleak, and this means that consumers will likely bear the ultimate brunt of the import tariffs.
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It’s important to understand that the short-term effects of tariffs may be quite different from the long-term effects. Manufacturers and consumers will undoubtedly change their behavior in response to these tariffs, but it is difficult to predict exactly how.
And while no one knows exactly what the future holds for US-Canadian trade, one thing is clear: Now is the time to make your purchase if you’ve been thinking about adding new hardwood floors to your home.
Import tariffs for U.S. residents are currently paused, so flooring costs are the same as they’ve been for some time. But we don’t know how long this will be the case, and things could change in a literal instant. You don’t want to end up paying more money for floors a few weeks or months from now.
Our team would love to help you pick out some new floors and finalize your order to avoid these kinds of potential price hikes that may be on the horizon. Schedule a consultation today or visit one of our showrooms to get started.