Ahead of the Trump administration’s April 2 reciprocal tariffs announcement, BofA Securities examines how building product companies could be impacted.

Mohawk Industries Inc (NYSE:MHK) would benefit from tariffs on Europe (ceramics) and Vietnam (luxury vinyl tile or LVT). The tariffs for Mexico are a headwind for Whirlpool and Mohawk.

Homebuilders could face headwinds from Canadian lumber tariffs. Manufacturers have announced price hikes to offset the “dynamic trade policy,” but the analyst sees a risk that volumes could weaken in a difficult macro backdrop.

BofA analyst writes that U.S. tariffs on China will affect the plumbing industry, including fixtures, valves and rough plumbing.

While some plumbing products are made in China, many components come from other parts of Asia.

Fortune Brands has stated that 50%-60% of its material costs come from outside the U.S., with less than 25% from China. The company aims to reduce that to below 10% by 2025.

Meanwhile, Masco said the latest 10% tariff on Chinese imports could cost the company $45 million annually before any cost-cutting measures.

Rising lumber prices could cut into homebuilders’ profits, the analyst writes. Lumber costs are up 12% this year, and the impact may be felt in the next three to six months. While builders managed price swings in 2021-2022, strong demand increased home prices by about 40%. With weaker demand and more homes on the market, offsetting higher costs may be more difficult now.

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