In early June, Trump increased tariffs on foreign steel and aluminum from 25 percent to 50 percent. These new tariffs on steel and aluminum imports will dramatically increase the cost of many construction and renovations projects, according to Construction Dive.
In one case study from design and construction firm Skanska, the new tariffs alone will add $22 million to a construction project that costs $375 million.
US manufacturers of construction products reliant on imported steel and aluminum are having to quickly adjust or remake their supply chains. But if they’re not able to do that, the new tariff costs are being passed directly on to buyers. This affects everything from rebar producers to HVAC equipment manufacturers.
Another issue related to tariffs is the ongoing uncertainty in costs. Will these tariffs actually last this time? Trump is well-known to change his mind and pull back on tariffs after pressure from other countries, making it difficult to budget and plan for project costs.
Greg Zimmerman is senior contributing editor for FacilitiesNet.com and Building Operating Management magazine.
