By Katherine Hamilton

Companies that build cabinets primarily in the U.S. got a boost to their share prices after President Trump announced new tariffs on imported kitchen cabinets.

Shares of American Woodmark and MasterBrand both rose 6% on Friday, to $69.40 and $13.70, respectively.

Trump said Friday the U.S. would impose a 50% tariff on all imported kitchen cabinets, bathroom vanities and related products, effective Oct. 1.

MasterBrand is based in Beachwood, Ohio and has 21 of its 26 manufacturing facilities in the U.S. The remaining five are in Mexico and Canada, according to its annual report. American Woodmark, based in Winchester, Va., has said it makes most of its cabinets in the U.S., with a few in Tijuana and Monterrey, Mexico.

The new tariffs would give domestic producers a chance to regain market share from cabinet importers, which have gained more share in recent years, Loop Capital Markets analyst Garik Shmois said. Importers from Southeast Asia, many of which sell online, have become favorites among multifamily and commercial property builders that are looking for cheaper and less specialized cabinets and vanities, Shmois said.

"The concern in the cabinets industry over the past decade is that imports have been increasing their market share," Shmois said. "This will make domestic producers more competitive."

The downside of the tariffs will likely be higher prices for the consumer, Shmois said. As lower-priced importers take on more tariffs, they will likely pass some additional costs down to customers. Shmois expects that process to take about three months, as companies work through their current inventories, so customers will start to notice the price increases during the spring remodeling and construction rush.

MasterBrand said in May it expected tariffs to eat a low-single-digit percentage of net sales during the full year. American Woodmark said in May it expected tariffs to have a $20 million impact in fiscal year 2026.

"These stocks are up on the view that there's a market share opportunity for domestic producers more so than the concern about the consumer," Shmois said.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

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(END) Dow Jones Newswires

September 26, 2025 12:44 ET (16:44 GMT)

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