Sweeping Tariffs Put Future Projects at Risk
Date Posted: April 3, 2025
Posted In: Discussion, Ideas, News,
From Construction Dive: Owners and developers of commercial construction projects may hesitate to move forward with new work after President Donald Trump levied fresh tariffs on more than 180 countries, according to industry sources.
On Wednesday, Trump announced a 10% baseline tariff for all U.S. trading partners with additional reciprocal tariffs for select nations, such as another 34% on Chinese imports and 20% on European Union imports.
Many key construction materials, such as steel, aluminum, lumber and copper, will be exempted from these reciprocal tariffs, according to a White House release. But importers of steel and aluminum have been paying 25% tariffs on these materials since March 12, while Canadian softwood lumber importers pay a 14.5% anti-dumping and anti-subsidy tariff, according to the National Association of Home Builders. That has been putting upward pressure on costs, said Anirban Basu, chief economist at Associated Builders and Contractors.
“Material prices are likely to rise in the coming months,” said Basu. “On the nonresidential side, keep an eye on prices for iron and steel products, as well as aluminum. Notably, domestic steel prices have already risen significantly.”
Price increases are expected, but they will take time to be worked into the system. Contractors tend to source products like concrete, gypsum and other raw materials domestically, so those are less likely to be impacted, said Tim Jed, supply chain leader at DPR Construction.
“However, even if products are domestically produced, tariffs could affect domestic pricing or lead times,” said Jed. “Ultimately, what matters is, where are we buying from and where are those materials being imported from, but that’s not an easy piece of information to get to.”