If a renovation quote has felt higher than you expected this year, you're not imagining it. Tariffs on lumber and cabinetry have pushed material costs up across the Lower Mainland in 2026, and it's changing how I plan projects with my clients.
What's Actually Driving Costs Up
Canadian softwood lumber has been subject to a combined U.S. anti-dumping and countervailing duty, plus a separate Section 232 tariff, for several years now. Rates peaked above 45% in 2025, and while a preliminary reduction announced in April 2026 is expected to bring the combined effective rate down to around 34.83%, a final determination isn't expected until later this year. In the meantime, elevated lumber costs continue to work their way into framing, structural work, and any project that opens up a building envelope.
Cabinetry has faced its own pressure too, with tariffs on imported cabinet and vanity components adding meaningfully to the cost of new custom cabinetry sourced from outside Canada.
Interestingly, the construction labour picture has actually shifted the other direction this year — after a period of acute worker shortages, contractors are now more often citing finding new projects, not finding workers, as their top challenge. That's a modest silver lining for renovation timelines, even as material costs remain the bigger pressure point. That said, longer-term projections still point to a structural shortfall in skilled trades by the early 2030s, so this relief may not be permanent.
How This Changes My Approach With Clients
This is exactly why I've been leaning even harder into the philosophy I talked about a few weeks ago: which you can read here. Targeted, high-impact updates over full renovations, wherever a client's goals allow for it. When cabinetry and lumber costs are both elevated, a full kitchen renovation that fully replaces cabinets and structural elements gets hit on multiple fronts at once. Refinishing existing cabinets instead of replacing them, or keeping a project's scope out of tariff-exposed materials where possible, meaningfully changes the math right now.
Where the Tariff Impact Hits Hardest
New cabinetry: This is one of the most directly affected categories. Refinishing or repainting existing cabinets, rather than ordering new ones, sidesteps this pressure almost entirely.
Structural lumber: Projects involving framing, additions, or structural changes are more exposed to elevated lumber costs than cosmetic-only renovations.
Imported fixtures and materials: Sourcing locally or regionally where possible, rather than imported product lines, can help offset some of this pressure.
What This Means for Your Budget
If you're planning a renovation in Surrey, Vancouver, or elsewhere in the Lower Mainland in the near future, I'd recommend:
Build in a larger contingency — 15-20% rather than the traditional 10%, given current price volatility on tariff-exposed materials.
Get quotes sooner rather than later — lumber tariff rates are still moving toward a final determination expected later this year, and locking in pricing earlier reduces exposure to further changes mid-project.
Talk through scope carefully before committing — a project that felt affordable at last year's pricing may need re-evaluating, and there's often a smarter, more targeted version of the same project that delivers most of the impact at a fraction of the cost exposure.
Frequently Asked Questions
Are lumber tariffs going to keep changing through 2026?
Yes — a final determination on the current preliminary rate reduction is expected later in 2026, so effective rates could shift again before year-end.
Should I delay my renovation until prices come down?
Not necessarily. Waiting carries its own risk if rates move the other direction, and a well-planned, targeted renovation can often absorb current pricing better than people expect.
Are there ways to avoid tariff-related cost increases entirely?
Not entirely, but choosing to refinish rather than replace cabinetry, sourcing regionally where possible, and keeping structural lumber use to a minimum are all ways to reduce your exposure.
Planning a Renovation in This Market?
If you're weighing a renovation given current material costs, I can help you figure out where to invest and where a smarter, more targeted approach makes more sense. Contact me today to talk through your project.
