Let’s talk about why that bathroom remodel just got pricier. In 2025, construction costs in Los Angeles aren’t rising because builders are greedy; they’re rising because world trade is a mess. Tariffs and supply‑chain headaches are squeezing everything from structural steel to imported tile.
What’s going on?
Two big forces are pinching your budget. First, tariffs. The U.S. hiked duties on steel and aluminum to 50 % this year [1], and policymakers have hinted at similar levies for copper. Those fees filter through to your remodel: steel mill products climbed around 5 %, lumber and wood products nearly 5 %, and aluminum shapes 6 % [2]. Even smaller items like copper wire and cable saw gains [3].
Second, supply‑chain disruptions. Attacks on ships in the Red Sea have forced carriers to detour around the Cape of Good Hope, adding weeks to voyages and pushing freight rates from Asia to the West Coast to roughly $7,000 per container [4]. At the same time, drought has slashed Panama Canal capacity by roughly 30 %, causing two‑ to three‑day delays for container ships [5]. Every imported tile or appliance you want has to survive that gauntlet, and the shipping surcharges follow them ashore.
How it hits Los Angeles projects
Developers and homeowners along the coast are seeing bids with escalation clauses because steel and lumber are so volatile. A few points on commodity pricing can translate into millions on a condo tower or tens of thousands on a hillside house. Imported tiles and fixtures are arriving late or with surprise surcharges thanks to shipping detours.
What you can do
Phase your project. Start with structural work now and finish with imported finishes later. Tariff talk may cool by the time you’re ready for that Italian porcelain.
Lock in bids. Ask contractors to separate material costs and lock pricing where possible.
Shop local. U.S.‑made tiles and engineered hardwoods are better than ever. Domestic products avoid tariffs and shipping delays.
Plan for delays. Build extra time into your schedule and keep alternatives handy.
The bottom line: tariffs and shipping chaos are temporary, but your dream home is permanent. With a little strategy, you can ride out this storm and still end up sipping cocktails on that new deck.
Footnotes
[1] Steel and aluminum tariffs were raised to 50 %, and further duties were considered constructiondive.com.
[2] Producer price data show steel mill products up 5.1 %, lumber and wood products up 4.8 %, and aluminum shapes up 6.3 % constructiondive.com.
[3] Tariff‑affected materials such as copper wire and cable rose 5.0 % constructiondive.com.
[4] Red Sea attacks rerouted vessels around the Cape of Good Hope, adding two to three weeks to transit and raising freight rates from Asia to the U.S. West Coast to roughly $7,052 per container supplychaindive.com.
[5] Panama Canal drought reduced booking slots by about 30 %, extending container transit times by two to three days supplychaindive.com.
