Photo by Troy Thies
The design-build industry faces distinct challenges—and, perhaps surprisingly, new opportunities—with the recent introduction of tariffs on goods and materials professionals rely on every day. But tariffs and trade policy remain a moving target, and the design-build industry is feeling the ripple effects in real time. As of this writing, new tariffs on key materials like steel, aluminum, and certain finished goods have been introduced, expanded, and even paused—with more under review.
With that said, the resulting cost increases, challenges, and supply chain disruptions vary by market, material, and timing—making it unrealistic to offer blanket predictions or resulting implications. What follows is a snapshot of how some Twin Cities professionals are navigating the uncertainty, knowing full well that the landscape could shift again tomorrow.
Loren Schirber, owner and business manager at Castle Building & Remodeling Inc., notes that while tariffs have introduced modest cost increases—potentially raising overall project expenses by about 1-3%—the bigger issue lies in the unpredictability surrounding them. Clients, he says, are struggling to make decisions amid a climate of fluctuating stock markets and temporary tariff pauses. “The uncertainty created so far has been worse than the reality,” Schirber explains. His team now emphasizes local sourcing more than ever—viewing tariffs as a catalyst to highlight the reliability and value of regional supply chains.
“We have great relationships with local tile makers, local window manufacturers, and makers of locally made cabinetry and countertops,” he says. “This trade war is even more reason to support our local makers.”
Andrew Schmidt, owner and CEO of Bloomington-based AMEK Design + Build, echoes many of Schirber’s sentiments. By addressing the issue early through clear, real-time pricing communication, Schmidt helps clients contextualize tariff impact. Remodeling, he notes, is less reliant on imported goods, with only about 7% of their materials coming from abroad. “Even a 25% tariff on lumber adds only around $2,500 to $4,500 on a $150,000 project,” Schmidt says. “That’s a 1.5-3% bump—well within the range of what we see in typical cost changes from year to year. When we walk clients through these numbers, it shifts the tone of the conversation from concern to confidence.”
Like Schirber, he also finds client hesitations are more often rooted in broader economic anxiety. To help ease financial concerns, AMEK has increasingly offered phased remodeling options, allowing homeowners to move forward at their own pace. “While we have always offered phased remodeling, it’s becoming a more popular option,” Schmidt says. “Clients still want quality, but they’re prioritizing essentials now and planning future phases later. We’ve also noticed homeowners with low mortgage rates are more inclined to stay put and remodel instead of moving—especially with higher interest rates and fewer new homes available.”
Photo by Troy Thies
At Kyle Hunt & Partners, a Deephaven-based luxury custom homebuilder, tariff-related disruptions have been negligible. According to vice president and co-founder Laurie Hunt, the team has seen typical spring price increases but no major cost shifts or material delays linked specifically to tariffs. “While we have seen typical spring price adjustments for products, there have not been significant cost changes or order delays for our clients,” Hunt says. “We might see more as we move through the year, but currently, there has not been any sense of alarm with our suppliers, and we have helped our clients by letting them know we will keep them informed of any notices we receive.” She adds, “We are hearing that there could be some increase ahead on finish materials, such as imported tile.”
From a kitchen and bath perspective, President Matt Cook of Sawhill Custom Kitchen and Design also has seen how tariff conversations can create pause for otherwise eager homeowners and suppliers. “We have seen many different reactions to the tariffs—both from our suppliers and from potential customers,” explains Cook, who adds he is particularly cautious with purchasing products like appliances, fixtures, hardware, and plastics right now. “The roller coaster of on-and-off tariff threats has created a reactive behavior. Homeowners have been excited to get the process of a new project started, and a week or two later, decide to wait until things settle.”
Photo by Troy Thies
Even so, his team remains focused on long-term relationships and steady procurement practices, resisting panic-buying or hasty decisions. One upside? Cook has noticed stronger ties with local partners and a broader interest in domestic suppliers—a shift that could have long-term benefits.
In the end, while tariffs continue to inject some economic uncertainty, they’ve also sharpened focus across the industry—prompting builders and remodelers to double down on local sourcing, pricing transparency, and adaptable planning. But, interestingly, the overall theme among these industry professionals is that the impact isn’t quite as it seems.
“Tariffs have created some minor disruptions, but they’re not the real story: fear is,” Schmidt says. “The media narrative often overstates the impact, which causes clients to pause unnecessarily. Our role has been to cut through that noise, provide grounded advice, and help clients make wise decisions. Ironically, this season has created opportunity—labor costs are softening, subcontractors are more available, and savvy clients are locking in value. For us, the focus is less on reacting to tariffs and more on educating through them.”
