Explainer: What do the new US tariffs mean for the short-term rental industry?

US: In April 2025, the US administration introduced a sweeping new round of import tariffs—marking one of the most significant shifts in trade policy in recent years. While the headline focus has been on manufacturing and consumer goods, the impact is filtering across multiple industries—including hospitality and short-term rentals.

What are the new tariffs?

The U.S. government has implemented a 10% blanket tariff on a broad range of imported goods from most countries, including major trading partners such as the UK, Australia, and Canada.

In addition, heightened tariffs—reaching up to 54%—have been imposed on products from countries like China and several EU member states. These include everyday items frequently used in the short-term rental sector, such as furniture, electrical appliances, homeware, and construction materials.

The introduction of these tariffs comes at an already turbulent time for US tourism. In March 2025, overseas visits to the US fell by almost 12% compared to the previous year with travel from Canada down by 23%. The resulting price hikes risk intensifying existing hesitations around travel, casting uncertainty over the outlook for property managers in tourism-dependent areas.

Economists have projected that these measures could result in:

• An average increase of $3,800 in annual costs per U.S. household

• A 2–3% rise in overall consumer prices in the near term

• Widespread supply chain reconfigurations across multiple industries

Implications for operators:

1. Costs are on the rise

Many short-term rental operators rely on imported furniture and homeware when outfitting or refurbishing properties. With the tariffs in effect, these goods are now more expensive—resulting in a 15–25% increase in fit-out and furnishing costs for new or upgraded listings. Whether it’s a smart TV, a modular sofa, or a set of kitchen essentials, hosts are finding that even modest upgrades now require more careful budgeting.

Tariff uncertainty and higher import costs are causing delays in the delivery of goods. For operators managing multiple properties, or preparing for seasonal surges, this has made it more difficult to plan ahead.

Some are opting to pre-purchase high-usage items—such as linens, crockery, and light maintenance tools—to avoid last-minute shortfalls during busy periods.

2. A decline in international tourism 

The decline in international travel to the US has been attributed to a combination of factors, including trade tensions, visa policy changes, and general unease among global travellers. This trend is particularly relevant for hosts in cities that have traditionally relied on overseas guests. In premium markets like New York, San Francisco, and Miami, the effect is already being felt in reduced occupancy rates and lower booking values.

3. Higher operational costs 

With overall operating costs increasing—whether through cleaning supplies, maintenance materials, or outsourced services—many hosts are re-evaluating their pricing structures. Some have introduced moderate rate increases to maintain profitability, while others are working to reduce overheads through renegotiated supplier contracts or streamlined operations. The challenge, however, is ensuring that price increases don’t negatively affect occupancy or guest satisfaction.

What’s next?

While the broader economic backdrop may be shifting, there are several measures that short-term rental operators can take to stay resilient:

• Prioritise domestic sourcing: Where possible, invest in goods manufactured or distributed locally. This not only reduces exposure to tariffs but can also cut down on shipping times and potential delays.

• Reposition your offer for domestic travellers: As international demand dips, consider appealing more strongly to domestic markets. Localised experiences, family-friendly amenities, and work-from-home features can be compelling for US-based guests.

• Use revenue management tools: Smart pricing software allows operators to adjust rates in real time based on market conditions, ensuring that margins are protected without deterring bookings.

• Streamline your  strategy: Maintain an inventory of frequently needed items to reduce emergency purchases, and review supplier contracts regularly to identify cost-saving opportunities.

• Highlight long-stay incentives: Encourage longer bookings by offering discounts for weekly or monthly stays—appealing to guests seeking value amid a higher cost of living