Tariffs have become an increasingly important factor in multifamily construction planning. Between 2025 and 2026, a series of federal actions reshaped how imported construction materials such as cabinetry, countertops, and flooring are assessed at U.S. ports. These changes introduced new costs, delayed enforcement timelines, and created uncertainty for developers and contractors trying to forecast project budgets.
At SCS Multifamily, tariff management is handled with structure, transparency, and clear documentation so our partners can plan with confidence.
In February 2025, the United States announced its intent to introduce reciprocal tariffs, signaling a policy shift toward aligning U.S. import tariffs with those imposed by foreign trade partners. While this announcement did not immediately increase costs, it established the framework for future country-specific tariff actions affecting imported construction materials.
That framework became more defined on April 2, 2025, when executive actions outlined a universal baseline tariff and authorized higher country-specific rates based on trade imbalances. Three days later, on April 5, 2025, the baseline reciprocal tariff went into effect. A 10 percent tariff began applying broadly to imported goods, including cabinets, quartz surfaces, and flooring.
Higher country-specific tariffs were initially expected to begin on April 9, 2025, but their implementation was delayed. From April through early July, most imports continued under the baseline structure while the administration evaluated final rates. This pause did not eliminate tariffs but delayed higher enforcement, creating challenges for cost forecasting.
Between July 7 and July 9, 2025, formal tariff notifications were issued to individual countries. Many finalized rates ranged from 25 percent to 40 percent or more, depending on origin and product classification. These rates became enforceable beginning August 1, 2025, with full implementation by August 7.
Later in the year, additional changes affected wood-based products. On October 14, 2025, Section 232 tariffs related to timber and lumber took effect, altering how tariffs applied to cabinetry and cabinet components and removing certain exemptions.
On December 31, 2025, the federal government issued a revision delaying a planned increase in cabinet and vanity tariffs. The anticipated escalation from 25 percent to 50 percent was postponed by one year. As a result, cabinets entering the United States in 2026 continued under the existing tariff structure rather than increasing on January 1 as originally planned.
At SCS Multifamily, tariff handling is structured, transparent, and aligned with how projects are contractually administered.
As a standard practice, estimated tariff amounts are included at the time of contract based on the most current regulations and country of origin. These estimates are incorporated into the contract value and billed progressively through the schedule of values, providing clarity and predictability throughout the project lifecycle.
Once materials clear U.S. customs, entry summary documentation is provided to confirm the actual tariff amounts assessed at port clearance. Any variance between the estimated and actual tariffs is then reconciled accordingly, with full supporting documentation.
This approach minimizes uncertainty, avoids speculative change orders, and ensures tariff costs are tracked, billed, and validated in a manner that is transparent and auditable for ownership, lenders, and project teams.
SCS makes zero profit on tariffs. Tariffs are not marked up, blended into material pricing, or used to generate margin. Every dollar passed through is supported by official entry summary documentation, and clients have full visibility into what was paid, when it was paid, and why.
Tariffs are a government-imposed cost, and we treat them as such.
We recognize that tariffs place real financial pressure on developers, general contractors, and ownership groups. They impact budgets, pro formas, and decision-making, often late in the project lifecycle.
Our commitment is straightforward. Clear communication, accurate documentation, and ongoing transparency. We actively monitor tariff developments, maintain direct relationships with our manufacturing partners, and stay closely engaged with customs and logistics teams so our clients are never left guessing.
When questions arise or updated projections are needed, our team is always available to walk through the details.
