ONSITEVIEW BlogHow Will Trump's proposed tariffs effect the Construction Industry

How Will Trump's proposed tariffs effect the Construction Industry?

February 12, 2025

The proposed 25% tariffs on steel and aluminum imports are poised to significantly impact the U.S. construction industry in several ways:

1. Increased Material Costs

• Steel and Aluminum: These metals are fundamental to construction. The tariffs are expected to raise their prices, leading to higher overall project costs.
• Lumber: Tariffs on Canadian lumber have previously escalated costs, affecting housing affordability.

2. Project Delays and Budget Overruns

• Supply Chain Disruptions: Tariffs may cause delays in material deliveries, leading to project slowdowns and increased expenses.

3. Housing Affordability Challenges

• Rising Home Prices: Increased construction costs can lead to higher home prices, exacerbating affordability issues.

4. Market Uncertainty

• Investment Hesitation: Uncertainty surrounding tariffs may cause investors to delay or cancel projects, affecting industry growth.

5. Potential for Retaliatory Measures

• Global Trade Tensions: Tariffs could lead to retaliatory actions from trade partners, further complicating material sourcing and pricing.

In summary, the proposed tariffs are likely to increase construction costs, cause project delays, and exacerbate housing affordability issues, introducing significant challenges for the U.S. construction industry.