Operating a flooring business currently presents many challenges as global supply chain underwent distinctive disruptions. Business owners today face complex supply chains issues involving manufacturing lead-time, logistics, and tariff uncertainties. This is especially challenging as flooring businesses needs to remain competitive in pricing while keeping up with product demand and in time delivery.
With major policy change that bring in significant market disruptions, the recent Trump administration’s announcement for “Reciprocal Tariff Policy” in early April 2025 has just done it. This adds significant supply chain uncertainty to the flooring industry and many others alike. The new introduced tariffs which applies on imported goods can potentially raises costs for wide range of flooring products. These products include luxury vinyl plank (LVP) flooring, laminates, engineered hardwood and much more.
Therefore flooring businesses need to understand the policy clearly to prepare for its widespread impacts. That way, they protect profits from serious negative change. They should maintain high project quality standards continually. They must safeguard their company’s financial stability firmly. Ignoring these new tariffs could have bad effects. It may cause serious cost increases on materials. It can also cause difficulty finding popular flooring products too. It may also contribute to project delays significantly. Also, pricing challenges in an already tense market ensue.
Reciprocal Tariff Policy Updates
New Tariffs: The Basics
- Baseline Tariff, Starting April 5, 2025: A 10% tariff applies to most imported goods for sale. This only applies unless specifically exempted from higher rates currently.
- Country-Specific Tariffs starting April 9, 2025: Much higher tariffs now apply in some cases. This concerns goods imported from certain listed countries specified.
Flooring Businesses and Industry Supply Chain Risks
Flooring brands and businesses depend heavily on imported sourcing goods. With sudden increase in tariffs against the arrival goods, flooring businesses are forced to pay additional tariffs. To make things even worse is that much of these products are backordered goods, and flooring business has to burden the lost from products already sold in advance.
What type of flooring products are impacted?
Unfortunately every type of flooring products will be under the influence from the tariffs, especially if the floorings are sourced from Asia, mainly China, Vietnam, South Korea, Taiwan. Some flooring products such as tiles and hardwoods coming from Europe or South America might have different tariffs applied.
- Luxury Vinyl Plank (LVP/SPC) : Mainly imported from China and Vietnam today.
- Ceramic & Porcelain Tiles: Significant imports from Europe (Italy, Spain) and China as well.
- Laminate Flooring: Commonly sourced from Asia and Europe.
- Bamboo Flooring: Mostly bamboo flooring are made in China.
- Engineered Hardwood: Wood layers and core materials come from different origin. These are often imported from China and Southeast Asia.
- Exotic Hardwoods: Often imported from South America right now. Also, sometime from Asia, as expected too.
Impacts on Flooring Businesses and Industry
Facing supply chain disruptions and tariff uncertainties with US market, flooring businesses, including flooring brands, flooring distributors, and even floor retailers will have challenges in the following aspects:
- Higher Material Costs are expected: Increased costs in importing will affect flooring materials prices greatly.
- Product Order Delivery Disruption: Shortages or shipment delays are expected from reduced exports from China in the short term. These shortages affect supply chains in a great way.
- Back Order Price Contracts: Unexpected cost increases can greatly impact profits, especially for backorders that has been sold and not yet delivered.