Bethlehem, PA – Uncertainty over tariff policy is severely dampening the outlook for the kitchen and bath industry. Trade issues have emerged as the most pressing challenge for industry development in 2025.

The “1Q25 Kitchen & Bath Market Index” (KBMI) released by the National Kitchen & Bath Association (NKBA) reveals that the potential impact of new tariffs on the U.S. economy and consumer spending has triggered widespread market uncertainty. Bill Darcy, CEO of NKBA, notes that with the outcome of U.S. trade policy adjustments still undetermined, the kitchen and bath industry faces new uncertainties, hindering short – term growth.

Despite industry professionals’ cautious optimism about the “gradual recovery” of the kitchen and bath market in 2025, two major risk factors remain. First, there is a group of homeowners delaying mid – range renovation projects due to high borrowing rates. Second, changes in tariff and immigration policies pose significant uncertainties. The impact of these factors on material and labor costs, as well as consumer behavior, remains to be seen. In the first quarter, concerns about tariffs and recessionary expectations eroded market confidence, affecting industry planning.

Data shows that orders for kitchen and bath manufacturers increased by 4.4% year – over – year in the first quarter, partly due to downstream companies’ pre – buying in anticipation of tariff – related price hikes. A significant rise in input costs has further fueled inflation. Meanwhile, supplier product prices increased by an average of 5.2%, with a 7% increase for appliances. Construction and renovation prices also rose by 5.2%. 68% of companies report that consumers either maintained product quality or opted for lower – quality products in the first quarter, reflecting caution in renovation planning. Darcy predicts that as tariffs reshape the international trade landscape, supply chain disruptions will intensify, and prices will continue to rise, plunging the industry into a period of volatility.