Tariffs, immigration, regulations, taxes…these are just some of the policy issues the Trump administration will grapple with in 2025 and beyond.
While there are many others, these four have the potential to impact the flooring industry more so than others. Some of President Trump’s specific proposals include:
- Taxes: President Trump promised to extend the expiring provisions of the Tax Cuts and Job Act (TCJA). Many of the provisions of the TCJA expire on Dec. 31, 2025, including qualified business income deduction (QBTD) that reduced taxes for LLCs and subchapter S corporations. Trump also plans to further lower the corporate income tax rate from 21% to 15%.
- Tariffs: Trump has proposed adding a tariff of 10% to 20% on all imports, with significantly higher levies (60%, according to some reports) on imports from China. It is likely that he will do this by executive action without Congressional approval.
- Immigration: The president has called for mass deportation of immigrants who are in the U.S. illegally. This could result in increased immigration raids at worksites, in which government officials arrive at a site with the intention of arresting undocumented workers. There will likely be a sharp rise in I-9 audits as well. According to the World Floor Covering Association, there were roughly 12,000 I-9 audits during President Trump’s last year in office, as compared to around 400 during President Biden’s last year. These raids and audits will focus on industries that have large numbers of immigrant workers, including construction.
- Regulations: Under President Trump there will likely be a rollback of regulations enacted under the Biden administration. Two significant Biden regulations—the white-collar overtime and independent contractor rule—will likely be repealed and replaced with the rules that the Trump administration issued during his first administration.
FCNews asked flooring industry executives what they expect from the new administration.
Here’s what they had to say:
“In general, deregulation should help stimulate additional investment from the private sector, which should help the economy. Ultimately, what I would like to see is the Fed move the rate down a couple of points. Right now, the biggest issue is existing home movement. So many people are in their homes with a 2%-3% mortgage; going to 7% makes it too costly. Since the Fed controls that, not sure how much effect the Trump administration will have.”
— Phil Koufidakis, Baker Bros, Phoenix
“Doing business is extremely challenging in California. That said, I’m hoping some of the policy changes at the Federal level will trickle down and benefit California. Changes like a controlled border, lower corporate and individual tax rates, reduced regulations on business and an increase in law enforcement.
These changes should help reduce the migration of higher income homeowners moving out of California and incentivize them to stay and make additional investments into their homes. These changes should benefit current and future homeowners and should lead to increased spending on floor covering.
I believe we will see some increased tariffs on imports, but I don’t expect the rates to be as high as recently quoted. I don’t recall the 25% tariff on Chinese imports being a key driver for inflation.”
— Dave White, Tri-West, Santa Fe Springs, Calif.
“Focusing on American manufacturing will help stabilize the market and make some of the key manufacturers who have made significant investment in domestic manufacturing even stronger.”
— Dan Mandel, Sterling Flooring, Anaheim, Calif.
“Trump and his administration have a clear mandate. If he stays true to the policies he campaigned on—and, in fact, enacted in his first term—it will be the “great reset” for the construction sector, which includes housing and flooring. Energy independence, closing the borders, lowering tax rates, cutting regulations on construction and small businesses in general. I’m looking forward to smart economic policy with Scott Bessant at the helm. All the above will move our economy forward quickly.
On another note, most manufacturers, importers and retailers are concerned about tariffs on Chinese goods. Apparently, Bessant hasn’t seen a tariff he doesn’t like as it adds to the Treasury. I personally believe, and it’s been stated, that tariffs can be the best leveraging tool to bring about parity.”
— Olga Robertson, FCA Network, Shorewood, Ill.
“If we are not hit with huge tariffs on imports, I anticipate a small increase in Q1 and a larger increase in business by Q3 2025. Consumers will have time to pay down some debt at the lower interest rate and hopefully the housing market will be a little stronger by then.”
— Ben Boss, Boss Carpet One Floor & Home, Rockford, Ill.
“I expect an uptick in business. I expect more spending and lower interest rates in 2025. I think consumers will proceed with caution but in a positive direction.”
— Chris Kemp, Kemp’s Dalton West Flooring, Newnan, Ga.
“Actions that help the overall economy and overall business environment will help our industry significantly, though derivatively. Eliminating needless or excessive regulation would be a step in this direction. Overregulation is a significant problem as it not only adds unnecessary costs across the economy, but ultimately stifles entrepreneurship and innovation. So, reducing some of the red tape would be on the wish list. Moreover, I would love to see the government redeploy resources toward encouraging and developing greater numbers of skilled tradespeople, including but not limited to, flooring installers.”
— Scott Rozmus, FlorStar Sales, Romeoville, Ill.
“Personally, I hope the incoming administration continues to set forth policies, as Trump did in his first term, that foster more stateside manufacturing.”
— Kevin Frazier, Frazier’s Carpet One, Knoxville, Tenn.
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