Power Tool Tariffs 2026: Prices Are Rising — What to Buy Before August

Here’s something most tool review sites won’t tell you right now: the tools sitting on Home Depot shelves today are likely the cheapest they’ll be for the next 12-18 months. If you’ve been sitting on a fence about buying a new drill, circular saw, or combo kit, you picked the worst possible time to procrastinate.

Trade policy changes affecting US imports from China and other manufacturing hubs have already started rippling through the supply chain. Battery prices are being squeezed hard — and batteries are the single biggest cost driver in any cordless tool kit. This guide breaks down exactly what’s happening, which brands are taking the biggest hits, and which tools to buy now before the prices climb further.

Prices accurate at time of writing — check current listings for today’s price.

What’s Driving Power Tool Prices Up in 2026?

The short answer: tariffs on imports from China and other manufacturing countries have been building since 2018, and the compounding effect is hitting tool prices hard in 2026. Here’s the breakdown:

The Manufacturing Reality

Most major power tool brands have complex, multinational supply chains. Even “American-made” tools often contain components manufactured overseas. Here’s where the real exposure sits:

• Lithium battery cells: Almost universally manufactured in China, South Korea, and Japan. There are essentially no domestic US alternatives at scale. Every cordless tool platform — Milwaukee, DeWalt, Makita, Ryobi — relies on imported battery cells.
• Electronic components: Motor controllers, sensors, and circuit boards are predominantly manufactured in Asia.
• Finished tools: Many tools at the budget and mid-range level are assembled in China, Taiwan, or Mexico.

The Tariff Pressure

Trade tariffs that have accumulated over several years — and expanded significantly in 2025 — are hitting at multiple points in the supply chain simultaneously:

• Lithium batteries and cells: Among the most heavily tariffed categories. Rates on battery products from China have escalated significantly above the baseline.
• Assembled power tools: The tariff rate varies by product type and manufacturing origin, but tools assembled in China face meaningful import costs.
• Components and parts: Even tools assembled in the US or Mexico often use Chinese-sourced components that face their own tariff hit.

The compounding effect matters: A cordless drill assembled in the US still has a battery (taxed at import) and electronic components (taxed at import). The “US-made” label doesn’t insulate a tool from price pressure if its key components are imported.

August 2026: Two Confirmed Price Increase Events

The Section 301 tariff pause that gave brands some relief in 2025 is ending. Per SBD’s Q1 2026 earnings call, the tariffs resume in August 2026 — adding another price-increase wave on top of the +4% already in effect as of Q1. Both the SBD price increase and Section 301 tariff return are now confirmed for August 2026 — buy before August to avoid both.

SBD’s mid-year guidance points to a second high-single-digit increase (approximately 7–9%) targeting DeWalt 20V MAX, FLEXVOLT, and Craftsman V20 lines. This is a deliberate corporate pricing action — not a tariff pass-through — driven by margin recovery and the cost of their ongoing China manufacturing exit. Buyers face two increases hitting in August 2026. The urgency window is NOW — Memorial Day deals through May 26 are the last major low-price window before August. See our Buy DeWalt Before August guide for the full SBD confirmation.

What SBD Said in Q1 2026 Earnings

Stanley Black & Decker — parent of DeWalt and Craftsman — confirmed in their Q1 2026 earnings call that:

• Prices increased approximately +4% in Q1 2026 on major DeWalt and Craftsman lines
• Section 301 tariffs are set to return in August 2026, creating a second pricing event in the same calendar year
• China manufacturing has been reduced to under 5% of total SBD output as a structural response, but this transition doesn’t remove the tariff impact on existing China-sourced components
• No further pricing guidance was given beyond “monitoring conditions”

For the full SBD Q1 2026 earnings breakdown and what it means brand-by-brand, see our DeWalt and Craftsman price hike analysis.

Brand-by-Brand Tariff Exposure: August 2026

Buy Now or Wait? — The August 2026 Decision Guide

The August 2026 Section 301 tariff return creates a clear window: buy high-exposure brands before August, be less urgent on low-exposure brands.

Memorial Day is the last major sale window before August 2026 tariffs hit. For high-exposure brands like Craftsman, Ryobi, and EGO, combining a Memorial Day discount with pre-tariff pricing is the strongest possible value. See our Memorial Day Power Tool Deals 2026 guide for current buy links by brand and retailer.

Which Brands Are Most (and Least) Exposed

🔴 Higher Tariff Exposure

Makita — Japanese company with global manufacturing. Many products are manufactured in China and Japan for the US market. Battery prices in particular are expected to climb.

Bosch — German company with manufacturing spread across multiple countries. US tool line relies on imports that face tariff pressure at multiple points.

Metabo HPT (formerly Hitachi) — Japanese parent company, significant manufacturing in Japan and Southeast Asia for the US market. Less domestic US manufacturing.

⚠️ Medium Tariff Exposure

DeWalt — CONFIRMED: DeWalt prices rising in 2026. SBD Q4 2025 earnings confirmed additional U.S. price hikes on DeWalt 20V MAX and FLEXVOLT products. SBD has significant NA manufacturing (including a large facility in Mexico) but has now absorbed $800M in tariff costs and cannot continue without price increases. China production cut to under 5% by end of 2026 is a long-term structural shift.

EGO / Greenworks — Chinese-owned brands with Chinese manufacturing. Some of the highest direct tariff exposure, but they started from lower price points that offer some cushion.

Milwaukee Tool — Owned by Hong Kong-based Techtronic Industries (TTI), but Milwaukee has the most US-focused manufacturing of any major brand, especially for accessories. Multiple assembly plants in the US potentially can reduce finished-goods tariff exposure, but components are still largely sourced abroad, including batteries, motors, and other key components.

Ryobi — Also TTI-owned – heavy Asia presence, especially in China and Vietnam.  Likely have avoided price increases by shipping in a lot of product before tariffs.

Ridgid — Manufactured by TTI for Home Depot. US assembly provides some tariff buffer.

The bottom line: No brand is fully insulated from price pressure.  The ever-changing tariff environment affects all brands and all types of products.  Even US assembled products are subject to component imports.   The battery problem affects everyone equally — when battery cells cost more, kit prices go up everywhere.

The Battery Problem Is The Biggest Deal

If you only remember one thing from this article, make it this: battery prices are where the real squeeze is happening.

Here’s why this matters more than the tool itself:

• A quality 5.0Ah lithium-ion battery costs nearly as much as some bare tools
• Battery cells are lithium chemistry — overwhelmingly manufactured in China and South Korea
• There is no near-term domestic substitute at scale
• Tariff rates on battery products have been among the most aggressively escalated categories

What this means for buyers:

• If you buy a bare tool today, factor in the battery cost at today’s prices
• Kit deals (tool + battery + charger) lock in current battery pricing — potentially a significant saving
• Stick-and-expand (bare tools for an existing platform) becomes riskier as battery replacement costs climb

Our battery platform comparison guide has the full breakdown on which platforms offer the best battery value right now.

Category Breakdown: Current Prices + Risk Level

Cordless Drills

Drills are the entry point for most buyers and the most competitive category. Entry-level brushed drills face the least pricing pressure since they use simpler components. Premium brushless drills have more exposure through their sophisticated electronics and battery requirements.

Buy advice: If you’re looking for a drill, now is a decent time to buy. The mid-range ($99-199) brushless market is competitive and unlikely to surge overnight. But if you want a battery kit (to start a new platform), price that in now. See our best cordless drills guide for specific recommendations.

Impact Drivers

Impact drivers are the category with the most direct tariff exposure in the mid-range. The $90-150 bare tool sweet spot (where DeWalt DCF850B and Makita XDT19Z sit) is facing cost pressure from battery component tariffs. These are genuinely good buys right now.

See our full best impact drivers guide for head-to-head testing and more options.

Circular Saws

Circular saws have a wide price range. Value picks in the $99–150 range are particularly at risk because their tight margins leave less room to absorb tariff increases. Premium saws from Milwaukee have more US-assembly buffer but battery costs still apply. See our best circular saws guide for current verified picks.

Combo Kits — Biggest Tariff Risk Category

Combo kits are where buyers face the most risk of price increases. Why? Because kits bundle multiple batteries (the most tariff-sensitive component) with multiple tools. A drill + impact driver kit that currently includes two 5.0Ah batteries at $349 could easily see $30-60 in battery-driven price increases if cell costs rise 15-20%.

If you’re buying into a platform from scratch, buy a kit now. This is the highest-urgency category.

For the full breakdown on which combo kit delivers the best value, see our best cordless combo kits guide.

Outdoor Power Equipment

Battery-powered lawn care equipment faces the same battery pressure as hand tools — but with much larger batteries. A riding mower battery pack is 10-20x the size of a drill battery. If battery cell costs go up 15%, the dollar impact on a $600 electric lawn mower is much larger than on a $99 circular saw.

If you’re planning to buy a cordless lawn mower, string trimmer, or leaf blower this season, buying before peak spring pricing is a double win — seasonal markup plus tariff pressure. Check our best cordless lawn mowers guide for current recommendations.

Smart Buying Strategies for 2026

1. Buy Bare Tools Now, Batteries When You Must

If you’re expanding an existing battery platform, the time pressure on bare tools is real but manageable. The bigger urgency is on kits that bundle batteries. If you need a new battery anyway, buy it now — don’t wait for spring when both seasonal demand and tariff-driven cost increases could hit simultaneously.

2. Don’t Panic-Buy the Wrong Tool

Price pressure is real but not apocalyptic. A 10-15% price increase on a $200 tool is $20-30 — meaningful but not justification for buying the wrong tool in the wrong category. Still buy what you need, not what’s “going on sale before prices rise.”

3. Watch for Bundle Deals That Include Batteries

Manufacturers sometimes offer promotional bundles with battery incentives before price adjustments. A “buy a tool, get a free battery” promotion locks in today’s battery economics. Check our live deals page for daily price tracking — Q2 2026 price increases are now in effect across DeWalt, Craftsman, and others.

4. Existing Platform Owners: Stock Up on Batteries

If you’re invested in a platform and planning to expand, buying an extra battery now at current prices is a legitimate hedge. Batteries are the component most directly exposed to tariff pressure, and they hold their value in use longer than you might think.

The Bottom Line

Power tool prices are facing genuine upward pressure in 2026 from compounding tariff effects, with battery products at the pointy end of the spike. The best moves right now:

1. Combo kit buyers: Move now. The bundle pricing on tool + battery kits is the most time-sensitive category.
2. Platform switchers: Milwaukee and Ryobi offer built-in tariff protection via US assembly if that matters to your decision.
3. Bare tool expanders: Less urgent but still reasonable to act — especially if you need a battery upgrade simultaneously.
4. Budget buyers: Value-tier tools with tight margins have the least ability to absorb cost increases. The $99-149 sweet spot may get squeezed upward.

Don’t let tariff anxiety push you into a bad purchase. But if you’ve been planning a tool upgrade for spring projects, there’s no good reason to wait.

Updated May 18, 2026. August 2026 deadline confirmed per SBD Q1 2026 earnings guidance. Memorial Day deals through May 26 are the last major sale window before the August increase.