Tariffs have been a critical tool in U.S. trade policy, affecting the construction industry in both direct and indirect ways. During Trump’s first term in office, he imposed wide ranging tariffs on a variety of imported products.
The Trump administration introduced tariffs on all steel (25%) and aluminum (10%) imports, known as the Section 232 tariffs. Similarly, he imposed Section 301 tariffs, which targeted Chinese goods, covering a wide range of imports totaling approximately $370 billion. For context, Section 232 tariffs are usually imposed on the grounds of national security, targeting materials deemed critical for defense, while Section 301 tariffs generally address unfair trade practices, such as intellectual property theft.
These measures aimed to boost domestic production and address trade imbalances. However, according to a report by the US International Trade Commission, these tariffs translated into higher prices for both imported and domestic construction materials and products.
Under President Biden, these tariffs largely remained intact even as the administration sought to mitigate some of the economic disruption through targeted trade deals.
More recently on the campaign trail, Trump suggested an even more aggressive tariff strategy. He has stated that he plans to impose tariffs as high as 60-100% on all Chinese imports, 25% on Canadian and Mexican goods, and a 10-20% universal tariff on all imports. These measures are aimed at addressing trade imbalances and incentivizing domestic production, but they also carry risks of escalating costs, retaliatory trade measures, and further complicating global supply chains. For the construction industry, such policies could lead to stockpiling of materials, increased contract complexity, and uncertainty in project pricing and timelines.
Trump’s threats of imposing aggressive tariffs could be a strategy to use them as a negotiating tactic with other nations and as such the final tariffs, if implemented, could look quite different from what he has said publicly. AGC continues to monitor developments and their potential impact on the construction industry.
Please contact Deniz Mustafa to share your insights and ensure industry priorities are reflected in future advocacy efforts.