Pros and cons on policy moves and impacts on flooring

HomeFeatured PostPros and cons on policy moves and impacts on flooring

President Trump’s second term continues to be a subject of intense debate, with critics describing many actions as controversial or unconstitutional and supporters highlighting policy achievements such as farmer aid payments and border security measures.

However, one issue that concerns the flooring industry is tariffs, with a range of views on how effective they have been. Some welcome the higher prices; others contend it has created too much uncertainty.

With that, FCNews asked several executives to weigh the pros and cons of Trump’s policies after the first year under his second term.


IN FAVOR OF

PRO/TAX CUTS

The first year of President Trump’s return to office brought its share of highs and lows, and the retail flooring market has felt both sides of the story. “On the positive end, the extension of the earlier tax cuts has been a real boon to business,” said Bruce Odette, president of Carpet Exchange in Denver.

The “One Big Beautiful Bill Act” (OBBBA) permanently extended many key business provisions of the 2017 Tax Cuts and Jobs Act (TCJA), aiming to provide long-term certainty and encourage investment.

“For flooring retailers, keeping more capital on hand means having the ability to invest in better displays, more inventory, updated showrooms and the people needed to deliver strong customer service,” Odette said. “Pair that with a strong stock market and many consumers have felt confident enough to move forward with flooring updates or larger home projects.”

PRO/’BIG BEAUTIFUL BILL’

The “One Big Beautiful Bill Act” also includes several business-friendly provisions, such as full expensing for domestic research and experimental expenditures, immediate expensing of certain business property and a permanent extension of qualified opportunity zones, which were also introduced in the 2017 Tax Cuts and Jobs Act.

“What I would like to see in year two is the benefits of the Big Beautiful Bill (tax refund, etc.), and we need the interest rates to come down,” said Phil Koufidakis, president of Phoenix-based Baker Bros Area Rugs & Flooring.


AGAINST

CON/TARIFFS-TRADE

One’s view on tariffs has much to do with your location. Some U.S.-based flooring dealers have hailed tariffs; Canadian retailers? Not so much.

“The Trump tariffs have exposed vulnerabilities in the Canadian economy because of our heavy reliance on exports to the U.S.,” said Raffi Sarmazian, co-owner of Sarmazian Brothers Flooring, Waterloo, Ontario, Canada. “Our economy is experiencing an environment of uncertainty that has negatively impacted consumer confidence and businesses, causing job losses across multiple sectors, including auto, steel, aluminum and lumber.”

Initially there was a movement among Canadian consumers to boycott U.S.-made products and companies, but this sentiment seems to not be as prevalent, according to Sarmazian. “We have noticed an impact on our business with fewer builders and developers moving forward with projects and slower retail foot traffic into our stores. Commercial and institutional work seems to be OK.”

There is a bright side as most Canadian exports have been exempted from the U.S. tariffs. On the flip side, the United States Mexico Canada Agreement is up for renegotiation on July 1, 2026. “If a deal cannot be made, I am worried this will further amplify the negative effects on our economy,” Sarmazian said. “So far, the Canadian government run by the Liberal Party has failed to cut a fair deal with our neighbor to the south. If we don’t get our act together soon, we will be heading for more economic headwinds, which may pull us further into an uncertain future.”

CON/TARIFF UNCERTAINTY

There are a few things more unnerving for a flooring retailer than uncertainty. But that is exactly what the on again/off again nature of tariffs has brought to bear. “It makes it hard to manage our buying and what our inventory cost is,” said David Whitehurst, executive vice president at Adleta, a top 20 flooring distributor based in Carrollton, Texas. “We are OK with or without [tariffs], but would prefer some long-term stability.”

Some dealers/distributors complained that tariff uncertainty created confusion around pricing, especially on products like luxury vinyl, hardwood and specialty carpet categories that rely heavily on imported materials. As a result, retailers have been forced to navigate unpredictable landed costs and explain price shifts that are often outside of their control. Add in the rising costs of everyday goods and mortgage rates that still haven’t dipped below 6%, and it’s no surprise that many homeowners have hit the pause button on bigger discretionary projects.

CON/ICE RAIDS

U.S. Immigration and Customs and Enforcement (ICE)’s mission is to protect America from the cross-border crime and illegal immigration that threaten national security. However, the way one distribution executive sees it, the efforts of ICE in the Los Angeles area—intended to deport illegal criminals—has created a situation with documented immigrants as well as undocumented immigrants who have no criminal record afraid and reluctant to leave their homes. “First, the media portrays the situation as any undocumented immigrant, even with a clean record, will be apprehended and deported, “said Dave White, outgoing president of Tri-West, Santa Fe Springs, Calif. “This has put a crimp on the local economy, and there has been a lot of laborers not showing up to install flooring as well as many other trades. This trend seems to be easing a bit, but we had a rough spell during the heavy raids, and there’s still some hangover from this.”

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January 26, 2026

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