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Construction economists and other experts are weighing in on how the new tariffs will impact the construction industry. Despite exemptions for key building materials, import taxes announced earlier this week by President Trump, could lead to a slowdown in new work. 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 mid-March, while Canadian softwood lumber importers pay a 14.5% anti-dumping and anti-subsidy tariff. Experts also say that increased costs mixed with market uncertainty regarding the new trade policy will likely start to slow construction investment activity. That will have an impact on nonresidential construction, specifically privately funded projects. Along with prices, economists are keeping an eye on the hiring rate. If reciprocal tariffs contribute to construction layoffs and if businesses are not expanding their staffing levels, it is likely to make economic growth difficult. ConstructionDive takes a broader look at the potential impacts. Click here to read more.
Construction economists and other experts are weighing in on how the new tariffs will impact the construction industry. Despite exemptions for key building materials, import taxes announced earlier this week by President Trump, could lead to a slowdown in new work.
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 mid-March, while Canadian softwood lumber importers pay a 14.5% anti-dumping and anti-subsidy tariff.
Experts also say that increased costs mixed with market uncertainty regarding the new trade policy will likely start to slow construction investment activity. That will have an impact on nonresidential construction, specifically privately funded projects.
Along with prices, economists are keeping an eye on the hiring rate. If reciprocal tariffs contribute to construction layoffs and if businesses are not expanding their staffing levels, it is likely to make economic growth difficult.
ConstructionDive takes a broader look at the potential impacts. Click here to read more.