Tariffs
Key Mineral Inputs to Construction Materials: Is the U.S. Dependent on Imports?
Alex Carrick on the key inputs to construction materials and the level of imports by the US.
TARIFF TOOLKIT
Your Central Resource for Tariff Impacts on the Construction Industry
From policy shifts to material pricing, get the latest impact reports, forecasts, and tools tailored on how tariffs are impacting the Construction industry.
Latest News Updates: The U.S. has imposed a 145% tariff on Chinese goods | China has imposed a 125% tariff on U.S. imports in response to U.S. tariff increases | 10% Baseline Tariff on All Imports: A 10% tariff now applies to all imports into the U.S., effective April 5, 2025 | Tariff Exemptions: Certain electronics, including smartphones, have been exempted from the 145% tariffs following market volatility
TARRIFS AND TRENDS
Timely Policy and Tariff Updates for the Construction Industry
Stay up to date on the latest tariff and policy changes and how they’re shaping the construction economy with insights from our Chief Economist, Michael Guckes. In under a minute, you'll get a break down of what’s new, what’s changing, and what it means for contractors and construction professionals across the industry.
ECONOMIC NEWS
Wondering How Tariffs Affect Construction? Start Here.
Explore all of our articles covering the latest tariff policy updates and what they mean for the construction economy. Stay informed on the changes shaping the industry and how they could impact your business.
Tariffs
Material Costs Going Up? Here’s How You Can Manage the Risks
Rising construction material costs make it tough to stick to budgets and finish projects. Here are tips to help contractors manage these challenges.
Johnny Bradigan
Apr 17, 2025
Tariffs
The Tariff War Impacts on U.S. Manufacturing Construction
Alex Carrick writes a column on the potential impact of tariffs on US manufacturing.
Alex Carrick
Apr 15, 2025
Tariffs
$2 Billion Airport Project Faces Undetermined Costs Amid Tariffs
Tariffs on steel and aluminum imports could impact the construction costs for the new $1.89 billion terminal at John Glenn Columbus International...
Marshall Benveniste
Apr 8, 2025
PROJECT STRESS INDEX
How Tariffs Can Impact Construction — And How the Project Stress Index (PSI) Helps You Stay Ahead
The Project Stress Index (PSI) is a 30-day rolling snapshot of preconstruction projects that have been delayed, abandoned, or placed on hold—serving as an early warning sign of potential slowdowns in the construction market. A rising PSI can signal market uncertainty driven by factors like rising material costs, labor shortages, or external pressures such as tariffs. In today’s shifting economic landscape, tracking the PSI helps contractors, suppliers, and manufacturers stay ahead of demand fluctuations and make more informed, strategic decisions.
FREQUENTLY ASKED QUESTIONS
Common Questions About Tariffs
What is a tariff?
A tariff is a tax imposed by a government on imported goods. Importers are responsible for paying tariffs, although the cost is typically passed onto the consumer. Tariffs are designed to protect domestic industries by making imports more expense and thus less attractive. However, very high tariffs can cause overall prices to rise, resulting in a total decline in the quantity of product consumed.
What impacts do tariffs have on the construction industry?
Tariffs may raise the cost of key construction materials like steel, aluminum, and lumber, leading to higher project costs, budget overruns, and delays. They also create uncertainty in pricing and supply chains.
How will tariffs and economic policies affect labor?
Tariffs can raise the cost of construction, which may result in fewer projects breaking ground. In a situation where fewer projects are breaking ground, we could see labor demand decline.
What impact will a trade war have on my business?
A trade war can disrupt supply chains, increase material costs, and lead to retaliatory tariffs from other countries. This can create financial strain, lead to delays or abandoned projects, complicate contract negotiations, and lead to general uncertainty around the future. The effects can make it hard for companies to invest or commit to other forward-looking decisions, which, in turn, can lead to stagflation or even a recession.
What is the impact on material goods moving forward?
Tariffs are expected to impact material prices, but the full extent may not be known for some time. Steel and aluminum prices have already been impacted. Ongoing trade disputes may further impact prices and destabilize supply chains. Materials that are imported the most, such as aluminum and copper, would be the most severely impacted by tarrifs. Goods like lumber, sand, gravel, and crushed stone, which aren’t imported into the U.S. as much, may be easier to find available product at reasonable prices.
How can I reduce the uncertainty around material costs?
Builders and contractors can manage these risks by factoring material sourcing into their planning and budgeting decisions. Choosing alternative materials that are less reliant on foreign suppliers, when possible, can help reduce exposure to global disruptions. This approach can help keep projects on schedule and within budget, making material strategy a critical factor in construction project success and profitability.
How can I manage the risks associated with fluctuating material costs?
There are a number of strategies you can use to manage the risks associated with changing costs, such as using escalation clauses, force majeure clauses, adopting cost-plus or flexible pricing contracts, and even locking in prices early. For more information on how to take these steps, CLICK HERE.