Proposed tariffs on building construction materials by President Donald Trump could raise costs for developers by as much as 10%, according to a GlobeSt report.
Projects that use a lot of steel such as high-rise apartment buildings, condo buildings, office buildings, and big government projects would be hit hardest. Trump has proposed 25% tariffs on construction materials including steel, aluminum, and lumber.
Smaller projects might be able to save money by using alternative materials. For example, shipping containers, which can be transformed into commercial properties and affordable housing, may be an attractive substitute for certain projects.
The tariff proposals were offered just as material costs seemed to be headed for stabilization. In the long run, there is a chance that the tariffs can help U.S. steelmakers be more competitive, leading to a steadying of prices.
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