Policies from the new administration in Washington, D.C., are keeping businesses in the Monadnock region wondering – and worrying – about the impact of certain tariffs on their enterprises.

Two building projects subject to tariffs from President Donald Trump’s administration are steel and lumber. Tod Von Mertens of Tod Von Mertens Furniture Design and Production in Peterborough works with both steel and lumber, and has already sensed an impact of tariffs, those real and those looming.

“A lot of vendors will send warnings of (tariffs on metals), saying that they’re going to impact prices (of his materials) in the future – maybe just to boost sales,” he said.

Von Mertens produces furniture, lamps and other items to enhance living in high-end spaces at his workshop on Vose Farm Road, where he uses plywood in some products.

In 2023, the United States bought more than $2 billion worth of plywood from abroad, making it the largest importer of it in the world.

“There’s very little quality in domestic plywood,” Von Mertens said.

He pointed to a credenza in his workshop to explain how integral the often-unseen commodity is.

“This is an $800 credenza, with $200 worth of plywood in it,” he said. Another element in his products, unfinished lumber, is domestically grown, often from Pennsylvania.

Steel and aluminum are other commodities subject to Trump administration tariffs, with a 25% import tax imposed on them in February. Twenty-five percent of U.S. steel comes from Canada and Mexico.

Reflecting on the possible impact of these government policies on his business, Von Mertens admits, “I should be a lot more concerned about it,” but adds that he’s pretty busy now, which perhaps ameliorates some worry.

“I’ll just have to accept what comes,” he said.

Not far from Von Mertens’ workshop, Cam Dexter has also given the impact of tariffs some thought. The owner of D.S. Huntington Architectural Woodworking in Peterborough uses a number of materials subject to import taxes in crafting commercial furniture and interior designs for schools, hospitals, resorts and high-end residential customers.

“Particle board is up 6%,” said Dexter, discussing one component of a large kitchen island he was crafting. “It’s from Canada.”

He’s concerned that just the talk of tariffs will impact prices of what he uses. The lumber import tariff set to take effect in April could clearly impact Dexter’s business.

“Thirty percent of my plywood comes from Italy,” he said.

Tariffs can leave business owners with no cost-saving options. A 2023 report by the U.S. International Trade Commission on steel tariffs during Trump’s first term noted that they reduced imports of steel from other nations by 24% on average from 2018 to 2021. They also raised U.S. steel prices and domestic production by about 2% each. Dexter is concerned that a basic rule of supply and demand will be realized, and its impact felt.

“With a fear of tariffs on imported materials, people and commercial users will buy up the domestic supply. So we’ll be forced to buy foreign, and pay the tariffs,” said Dexter. In this scenario, a shrinking domestic supply would result in higher prices, thus creating higher costs everywhere, for goods made here and those that are imported.

Dexter is also concerned that with a sense prices could go up, suppliers will raise them since people expect them to go up, even if realities don’t justify them.

“My basic fear is that suppliers will jack up prices just because,” said Dexter.

American Steel Fabricators of Greenfield also has a stake in this issue. The firm has been involved in projects ranging from the pedestrian bridge over Route 9 in Keene to MBTA stations in Massachusetts. When contacted, the firm’s owners provided a statement on the matter issued by the American Institute of Steel Construction: “Steel fabricators and industry stakeholders should closely monitor these developments and assess their impact on supply chains and pricing. Companies importing materials from affected countries should review tariff classifications, explore alternative sourcing strategies, and stay informed about potential regulatory updates.”