Take it easy on your kitchen’s 20-year-old tile floors. New ones likely won’t come cheap if the Trump administration imposes new tariffs today.
New research from Bank of America analyst Rafe Jadrosich found that 40% of the ceramic tile market is imported. About 80% of the luxury vinyl tile market is imported. Roughly 35% of ceramic imports come from Italy and Spain, followed by 14% each from Mexico and India. China accounts for 50% of the imports of luxury vinyl tile.
Those tile floors, along with bathroom fixtures and dishwashers, were highlighted as three common household items that could see higher prices with new tariffs.
Read more: What Trump’s tariffs mean for the economy and your wallet
Jadrosich added that plumbing fixtures, valves, and rough plumbing are manufactured in China, in addition to upstream components imported from Asia.
Plumbing supplier play Fortune Brands Innovations (FBIN) has disclosed that 50% to 60% of its input costs come from outside the US, per Jadrosich.
Home improvement products supplier Masco (MAS) has said a 10% tariff on China would have an annualized impact of $45 million on profits before any mitigating actions like price hikes.
Jadrosich estimated that about 40% of the US appliance industry’s sales are imported. About 43% of the industry’s products are sourced from China, 20% from Mexico, and 11% from South Korea. Whirlpool (WHR) leans on Mexico and China for 20% of its cost of goods sold.
The most exposed building materials stocks to new tariffs include Whirlpool, Fortune Brands Innovations, Masco, and flooring player Mohawk Industries (MHK), Jadrosich said. All four stocks are down for the year and trailing the S&P 500 (^GSPC), with Whirlpool leading the way with a 20% tumble.
“The impact to housing stocks will depend on the details,” Jadrosich warned.
As of 3:34:06 PM EDT. Market Open.
WHR FBIN MAS
Markets are on edge as worries about Trump’s tariffs ripple through corporate America, with the threat of retaliation by trading partners adding to the potential impact of hiked duties.
Trump is expected to unveil his new tariffs on what he calls “Liberation Day” after the market closes today around 4:00 p.m. ET. How tariffs shake out is anyone’s guess.
The administration has floated everything from a 20% universal tariff to ones that are more sector-based. Administration officials said Tuesday the tariffs would take effect immediately but hinted Trump would be open to negotiating them lower.
Watch: AMD CEO warns about impact of tariffs on semis
A 25% US tariff on imports of steel and aluminum from all countries already took effect on March 12.
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