Trump 2.0: Tracking the Trump administration's impact on the U.S. building construction industry
By BD+C Staff
The Building Design+Construction editorial team created this newsfeed to help keep you up to date on the latest news and commentary related to the Trump administration's impact on the U.S. building construction industry. This newsfeed will be updated daily.
Construction prices up for the third month
Construction Dive, April 14, 2025
Nonresidential input prices rose by 0.6% in March, according to Associated Builders and Contractors’ analysis of the latest Bureau of Labor Statistics data. Input prices are now 0.8% higher than a year ago and 40% higher than February 2020, the start date for the COVID-19 pandemic. Read more
Another day, another tariff shift
Building Design & Construction, April 12, 2025
Several news organizations reported today that President Trump has decided to exempt electronics exported to the U.S.—including semiconductors, transistors, laptops, smartphones, and flat-panel computer monitors—from reciprocal tariffs ordered last Wednesday.
Quoting from a U.S. Customs and Border Protection notice posted late Friday, the reports state that the exemptions don’t include the 20% tariff imposed on Chinese goods for that country’s role in the fentanyl trade. Read more
White House clarifies tariffs on Chinese imports, which now stand at 145%
CNBC, April 10, 2025
Trump economic advisor Kevin Hassett says there are trade deal offers from 15 countries. And Trump decided to reverse course on his universal reciprocal tariffs because he feared they’d trigger a depression, according to the Wall Street Journal. Read more
Trump tariffs drop to 10% universal rate for countries except China for 90 days
CNBC, April 9, 2025
The levies on Chinese imports jump to 125% effective immediately, says the White House. Meanwhile, China has a reciprocal tariff of 84% on U.S. goods, and the European Union has approved retaliatory tariffs. Read more
HVAC, plumbing, and electrical equipment to be hard hit by tariffs
Building Design+Construction, April 9, 2025
The new tariffs recently announced by the Trump administration will lead to higher costs on building materials, with HVAC, plumbing, and electrical equipment expected to be particularly hard hit. Some building material companies have already raised prices, and others are expected to do so. Tariffs on eight of the top 10 exporters of HVAC and water-heating equipment are as high as 46%. Read more
China and EU fight back with new tariffs on U.S goods
New York Times, April 9, 2025
President Trump’s global trade war intensified on Wednesday, sending markets reeling, as China announced additional levies on American goods hours after the White House’s punishing new tariffs took effect and increased taxes on Chinese goods to 104%. The European Union approved its own retaliation for U.S. steel and aluminum tariffs, adding to fears of a global recession. Read more
Trump tariffs bring angst, uncertainty to mechanical contracting industry
Contractor magazine, April 7, 2025
Tariffs are set to impact the mechanical contracting industry in a number of important ways. Manufacturers of plumbing and heating tools and equipment—including water heaters, heat pumps and tankless devices—will see their raw materials prices rise and will pass those cost increases on to their customers. For the same reason service trucks and vans will become more expensive. General contractors will also see the price of materials rise which will have a dampening effect on new construction projects, meaning less work for mechanical, electrical and plumbing subcontractors. Read more
In face of global market slide, Trump ready to deal on tariffs
CNN, April 7, 2025
Global stock exchanges continued to plunge this morning, even after President Trump said last night that he’s open to talking to other countries about striking new trade deals. Trump advisors claim that more than 50 countries have reached out to the Trump administration since he issued his executive order about imposing new tariffs. Since the Presidential election last November, U.S. stock exchanges have fallen by more than 15%, much of that decline in the past few days. Read more
New tariffs raise construction costs
AGC Data Digest (Ken Simonson, AGC Chief Economist), April 4, 2025
The tariffs that President Trump announced on Wednesday have multiple implications for construction. Nearly all imports will be subject to 10% “baseline” tariffs, effective April 5. Additional “reciprocal” tariff rates, effective April 9, vary by country, with the highest total rate, 54%, applying to imports from China. Items from Mexico and Canada that are subject to the U.S.-Mexico-Canada Agreement are exempt from new tariffs. But many autos and light trucks are subject to a 25% tariff. The 25% tariffs on steel and aluminum that took effect on March 12 affect the cost of many domestically produced construction materials, equipment, heavy trucks, and trailers. More detail is at AGC’s Tariff Resource Center.
The tariffs may encourage more factory construction in the U.S. but could also cause many types of firms to lose sales and cut back on construction: retailers and wholesalers that sell imported items, manufacturers that use imported components, and firms throughout the supply chain that lose export sales as result of foreign retaliatory actions or consumer boycotts.
More at: https://agca.informz.net/AGCA/pages/DataDigest_040425
Construction employment rises modestly in March
Associated Builders and Contractors, April 4, 2025
The construction industry added 13,000 net jobs in March, a 1.8% gain from the same month in 2024 and the slowest year-over-year growth in four years, according to Bureau of Labor Statistics' estimates that were analyzed by the Associated Builders and Contractors trade group. The job losses appeared to be mostly on the residential construction side, as nonresidential construction employment increased by 22,300 positions on net in March, during which the construction unemployment rate, at 5.4%, was unchanged from a year ago.
‘Worse Than Covid’: Trump’s Port Fee Plan Could Upend U.S. Shipping Schedules
gCaptain, April 3, 2025
Shipping industry executives are considering options to address Trump administration policy changes, under consideration or enacted, that could significantly disrupt operations, speakers said here this week at the 40th annual Connecticut Maritime Association annual meeting.
Containership operators, for example, are weighing radical reconfiguration of ship schedules to avoid costly ship call-based port fees being considered by the Trump administration.
Should operators decide to reroute their vessels to major US “load center” ports, at the expense of smaller secondary ones, to reduce exposure to new fees, “it would absolutely crush us,” said Bethann Rooney, port director for the Port of New York and New Jersey. “We need to prepare to work effectively,” she said.
PONY/NJ is the busiest container port on the East Coast and among the busiest in the US.
The result “would be far worse than we saw on the West Coast during the (COVID-19) pandemic,” Rooney said during a presentation on Wednesday.
Trump lays out his tariff plan
Building Design+Construction, April 2, 2025
Speaking from the Rose Garden before an audience of cabinet members and supporters, President Donald Trump said this afternoon that his administration would impose a 10% “minimum” across-the-board tariffs on all imported products, a 25% tariff on foreign cars and auto parts, and additional “reciprocal” tariffs on other countries.
The reciprocal tariffs seem to have been calculated by halving the individual tariffs Trump says are being imposed on U.S. goods shipped to other countries. (He held up a chart listing about two dozen offending countries for emphasis.) For example, the tariff on Chinese imports will be 34%; on products coming from European Union nations 20%; on Taiwanese imports 32%.
Trump promised a “golden age” in American manufacturing and its economy as a result of the “trillions” of dollars in revenue he asserted would derive from the tariffs. CBS News quoted unnamed White House officials that Trump has bandied around an idea about forming an “External Internal Revenue Service” that would collect and track tariffs, although Trump offered no specifics about such thinking.
With his usual bombast, exaggeration, and stream-of-consciousness delivery, Trump used this speech to praise his cabinet members, lambast other nations including allies for trade policies he says treat the U.S. unfairly, and to recite a list of accomplishments he says his administration has achieved so far.
Trump delivered his tariff order after today's closing bell on Wall Street. Stock exchanges have been rattled by the uncertainties from the president's tariff strategy and constant updating over the past several weeks. Whether his latest speech eases investors' nervousness will soon enough be known.
Trump’s tariffs comprise a complex web
ConstructionDive, March 31, 2025
The website ConstructionDive has assembled a handy chart that shows the status of the Trump Administration’s tariffs, which is searchable by sector and country. Trump has said several times that he will roll out reciprocal tariffs on April 2. Read more
U.S. to slap tariffs on auto and truck imports next week
New York Times, March 27, 2025
President Trump said on Wednesday that he would impose a 25% tariff on cars and car parts that were imported into the United States, a move that is likely to raise prices for American consumers and throw supply chains into disarray as the president seeks to bolster U.S. manufacturing. The tariffs go into effect April 3. Read more
Multiple agencies divert manpower to assist Trump’s immigrant hunt
Reuters and The Guardian, March 24, 2025
As President Trump pledges to deport “millions and millions” of “criminal aliens,” thousands of federal law enforcement officials from multiple agencies are being enlisted to take on new work as immigration enforcers, pulling crime-fighting resources away on other areas — from drug trafficking and terrorism to sexual abuse and fraud.
In related news, the Internal Revenue Service (IRS) is reportedly nearing a deal to allow immigration officials to use tax data to support Donald Trump’s deportation agenda, according to reports by the Washington Post. Read more here and here
Did Trump just back off his tariff dates?
CNN, March 24, 2025
Trump administration officials are trying to tamp down expectations that every pledged tariff action will go into effect April 2, Bloomberg and the Wall Street Journal reported this weekend. Instead, a significantly reduced batch of tariffs will be announced next week, and more could follow later, although both reports said the situation remains fluid and the ultimate decision could change. Read more
Flurry of tariffs is causing confusion among contractors
Associated General Contractors of America, March 17-21, 2025
In its weekly Data Digest, AGC reports “confusion and uncertainty” over items, parts, and derivative products subject to recently imposed tariffs of 10% on all imports from China (effective March 4, following earlier 10% tariffs on February 4); 25% on many items from Canada and Mexico (March 4, 10% on oil and gas); and 25% on all steel and aluminum (March 12). Read more
Federal Reserve keeps interest rates unchanged
USA Today, March 19, 2025
The Fed kept its forecast for two cuts in 2025 as officials struggled to respond to the double-barreled threats spawned by President Donald Trump’s widening trade war – rising inflation and a slowing economy.
The Fed also raised its 2025 inflation forecast while downgrading its economic growth outlook. Read more
Trump Administration stops program that preserves affordable housing units
Building Design+Construction, March 19, 2025
The Trump Administration halted a program that pays for repairs that preserve affordable housing units, according to ABC news.
The projects keep tens of thousands of units livable for low-income Americans, the ABC report says. The program has already awarded the money to projects for least 25,000 affordable units across the country. Details of how the program will be shut down are unclear. The program is being “terminated” at the direction of DOGE. Read more
Builders, owners continue to prioritize sustainability despite federal changes
Building Design+Construction, March 19, 2025
Since taking office, President Donald Trump has signed a series of executive orders to de-prioritize clean energy and sustainability projects that receive federal funds and made policy changes that de-emphasize sustainability.
Despite these actions, most construction industry clients haven’t changed their priorities when it comes to building greener and more resilient buildings. A Skanska executive quoted in a Construction Dive article says clients with sustainability commitments in their portfolios are sticking to pledges they have made to stakeholders and investors. Read more
ABC lauds Trump for rescinding Biden policies on mandated labor and apprenticeships
Associated Builders and Contractors, March 17, 2025
Associated Builders and Contractors today issued a statement applauding President Trump’s recent executive order rescinding what ABC called “harmful” Biden administration executive actions that increased costs, restricted competition, exacerbated construction’s labor shortage and delayed taxpayer-funded construction of critical infrastructure, manufacturing and clean energy projects.
ABC had testified previously to Congress that, when mandated by government, Project Labor Agreements (PLAs) can add 12-20% to construction costs, and reduce competition.
ABC was also pleased with President Trump’s elimination of Biden executive orders pushing government-registered apprenticeships on federal and federally assisted construction projects and the revocation of an EO related to minimum wages for employees working on federal contracts.
In total Trump’s March 14 executive order revoked 19 Biden EOs that ABC opposed.
Tens of thousands of fired federal workers must be rehired, says U.S. District judge
Politico, March 13, 2025
Judge William Alsup in San Francisco called President Trump’s attempts to shrink the federal bureaucracy via mass firings “a sham.” He ordered the Defense, Treasury, Energy, Interior, Agriculture and Veterans Affairs departments to “immediately” offer all fired probationary employees their jobs back. The Office of Personnel Management, the judge said, had made an “unlawful” decision to terminate them. Read more
Trump orders intended to boost production of domestic lumber
Building Design+Construction, March 13, 2025
President Donald Trump recently issued new executive orders to increase production of domestic lumber.
One order directs the Secretaries of the Interior and Agriculture to issue new guidance for increased timber production on federal land administered by the Bureau of Land Management and the National Forest system. Currently, timber harvesting on federal land requires thorough environmental assessments that could be reduced or eliminated under Trump’s directive. The action drew sharp criticism from environmental organizations. Read more
ABC lauds Trump Admin’s plan to clarify Waters of the United States rule
Associated Builders and Contractors, March 12, 2025
Ben Brubeck, VP of Regulatory, Labor and State Affairs for the Associated Builders and Contractors (ABC), in a statement thanked President Trump and EPA administrator Lee Zeldin for the announcement that the agency would revise its definition of “waters of the United States.”
Brubeck said that uncertainties surrounding the Clean Water Act have been an impediment to development. “By ensuring full implementation of the U.S. Supreme Court’s ruling in Sackett v. Environmental Protection Agency, the EPA and [U.S. Army Corps of Engineers] can enact unambiguous boundaries on the scope of the federal government’s authority to maintain key water quality protections. Doing so will enable developers and contractors to efficiently comply with these important environmental regulations while avoiding unnecessary delays to critical infrastructure projects.”
Read the EPA’s announcement here.
In other related news, this afternoon the New York Times and other news sources reported that the EPA planned to close all 10 of its environmental justice offices responsible for addressing the disproportionately high levels of pollution in marginalized communities. An EPA spokesperson said these moves align with Trump's orders to end “wasteful” spending and DEI programs.
Tariff tizzy: U.S. and Canada walk back latest volleys
Reuters, March 12, 2025
The Trump Administration’s 25% tariff on steel and aluminum imports took effect this morning. But after the American stock exchanges plummeted over the past two days, Trump temporarily lifted the extra 25% tariff on imports from Canada it imposed only a day before. Canada’s Ontario province in turn suspended its 25% electricity surcharge that would have hit 1.5 million American homes and businesses in three states.
These tariff skirmishes haven’t ended, however. The European Union vowed it would respond to Trump’s threat of reciprocal tariffs with surcharges on $28 billion in U.S. exports. Read more
Trump Admin doubles tariffs on steel and aluminum products from Canada
New York Times, March 11, 2025
President Trump said this morning that he would add another 25% tariff, in response to surcharges being imposed by Ontario on electricity supplied to some U.S. states.Trump also reiterated that Canada should become part of the United States. Read more
Five Steel Groups Pledge Support for Steel Tariffs, Applaud Actions
American Institute of Steel Construction, March 10, 2025
In Washington, D.C., five organizations representing the American steel industry today wrote to President Trump to express strong support for restoring 25% tariffs on steel imports and eliminating the exclusion process for that tariff program.
The American Iron and Steel Institute (AISI), Steel Manufacturers Association (SMA), Specialty Steel Industry of North America (SSINA), American Institute of Steel Construction (AISC) and U.S. OCTG Manufacturers Association (USOMA) today sent a joint letter to the president reiterating the steel industry’s support for steel tariffs under Section 232 of the Trade Expansion Act of 1962 and for “the elimination of the steel Section 232 exclusion process that has been exploited as a loophole by foreign producers seeking to avoid tariffs.” Read more
Ontario imposes an additional 25% tariff on electricity exports to U.S.
Associated Press via NBC News, March 10, 2025
Canada's most populous province will charge that much more for electricity to 1.5 million businesses and homes in Minnesota, New York, and Michigan. The tariff will remain in place despite a one-month reprieve on U.S. tariffs on Canadian goods. Read more
Trump doesn’t rule out recession or higher inflation
Financial Times, March 9, 2025
During an interview on Fox News on Sunday, President Trump declined to rule out a recession hitting the U.S. economy this year. During that interview, he also dismissed concerns among business leaders about his administration’s tariff strategies.
The Atlanta Fed has warned of an economic retraction in the first quarter of the year. And when asked whether tariffs might fuel inflation, Trump responded “You may get it.” He added that interest rates are down. Read more (subscription required).
U.S. employment continued to rise in February
CNN, March 7, 2025
The Bureau of Labor Statistics stated that the country added 151,000 new jobs in February, up from an adjusted 125,000-job gain in January. February’s unemployment rate was 4.1%, up marginally from 4% in January. Read more.
Trump threatens Russia with sanctions and tariffs
The Guardian, March 7, 2025
President Trump stated on Truth Social that he would consider “large scale” banking sanctions and tariffs if Russia didn’t agree to a cease fire and peace agreement with Ukraine. Read more.
Hewlett Packard Enterprise lays off 2,500 to cushion impact of tariffs on economy
Wall Street Journal, March 7
Tech giant Hewlett Packard Enterprise said it would cut about 2,500 jobs, or 5% of its global workforce, in a cost-reduction program that came as the company said it expects its fiscal 2025 profit to be dragged down in part by tariffs. Read more (subscription required).
Businesses baffled by Trump’s erratic trade policies
Associated Press, March 6
The Associated Press quoted business leaders who feared that Trump’s on-again off-again tariff’s strategies are making it harder for them to plan ahead and make decisions about pricing, plant construction, new-product rolllouts, and even determining whether past trade agreements with other countries are still valid. Read more.
Trump pauses tariffs on imports from Mexico and Canada
Supply Chain Dive, March 6
After speaking with Mexico President Claudia Sheinbaum Thursday, Pres. Trump said he would pause tariffs on imports compliant with the United States-Mexico-Canada Trade Agreement until April 2, when the Commerce Department is scheduled to submit a new report on this matter.
Commerce Secretary Howard Lutnick told CNBC that similar treatment could be coming for goods imported from Canada under the USMCA. A couple hours later, Trump paused tariffs on all USMCA imports until April 2. Read more.
Tariff panic causes steel prices to spike
Associated General Contractors of America, February 24-28, 2025
In his weekly Data Digest, Associated General Contractors of America’s economist Ken Simonson noted that steel prices were rising sharply. He cited one reader who sent the following list of increases announced in January and February: tube up $350 per ton (4 increases); plate, $200 (2); rebar, $70 (2); merchants, $60.
Investment analyst Timna Tanners of Wolfe Research wrote that “mills have been reluctant so far to ramp up capacity, instead hiking prices 30% from lows before tariffs were announced.” In a separate note to investors regarding President Trump's announced restored 25% tariffs on all steel imports, Tanners wrote, “panic buying ahead of the March 12 effective date has helped boost [hot rolled coil to around $840 per short ton (st), per price reporting firm CRU], up from January lows at $680/st, with some mills already at $900/st. Read more.
Gilbane offers a positive take on market conditions in early 2025
Gilbane Building Company, February 12, 2025
In its first quarter 2025 Market Conditions report, Gilbane states that, despite a slight uptick in inflation, the U.S. economy remains healthy due to continued spending growth.
Key takeaways from the report:
- Total engineering and construction spending for the U.S. ended 2024 up 6.5 percent, just above 2023 growth of 6%.
- High-performing segments in 2024 point to strong investment growth across manufacturing, public safety and water supply, each with anticipated year-end growth of more than 15% above 2023 levels.
- Contractors may face price uncertainties in the coming months due to surcharges, tariff costs, increased production costs, and product substitutions.
ABC: Construction materials prices up 1.4% in January, and 40.5% since February 2020
Associated Builders and Contractors, February 13, 2025
Construction input prices increased 1.4% in January compared to the previous month, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics’ Producer Price Index data released today. Nonresidential construction input prices increased 0.9% for the month.
Overall construction input prices are 1.3% higher than a year ago, while nonresidential construction input prices are 0.7% higher. Prices increased in all three energy subcategories last month. Crude petroleum prices increased 14.8%, while natural gas and unprocessed energy material prices increased 13.7% and 13.0%, respectively
“Materials prices increased at the fastest monthly pace in two years in January,” said ABC Chief Economist Anirban Basu. “This rapid escalation is largely due to three factors. First, energy prices rose sharply. Second, producers often raise their prices at the start of the year. And third, many purchasers rushed to buy inputs before potential tariffs could go into effect, and that surge in demand pushed prices higher.”
“Of these three factors, tariffs are the only one that could continue to push input prices higher in the coming months,” said Basu. “Import taxes allow domestic producers to raise their prices, and the new 25% levies on steel and aluminum will result in just that if they remain in place. A strong majority of contractors expect their sales to increase over the next six months, according to ABC’s Construction Confidence Index, and the combination of increased demand for construction inputs and ongoing supply chain confusion suggests input price escalation could accelerate through the first half of 2025.” Read more.
Developers fear building material inflation from tariffs
Globest.com, February 12, 2025
Proposed tariffs on building construction materials by President Trump could raise costs for developers by as much as 10%.
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. Read more.
FEMA won’t enforce laws protecting public buildings in flood zones
New York Times, February 14, 2025
The Federal Emergency Management Agency has reportedly decided to cease enforcing rules designed to prevent flood damage to schools, libraries, fire stations, and other public buildings.
The policy has not been publicly announced, according to a report in the New York Times. FEMA’s stance could endanger public safety and may be in violation of federal law, according to experts cited in the report. The Federal Flood Risk Management Standard says that when public buildings in a flood zone are damaged or destroyed, they must be rebuilt to prevent future flood damage in order to qualify for FEMA funding.
Under the rule, rebuilt structures could be required to be elevated above the expected height of a future flood or be relocated to a safer location. FEMA said that the flood rule is under review after President Donald Trump issued an executive order revoking an executive order calling for a federal flood standard issued by President Joe Biden.
The executive director of the Association of State Floodplain Managers said failing to enforce the rule would make people less safe and lead to waste of taxpayer dollars, the Times’ report said. Read more.
Trump considers putting federally owned office buildings on the block
Building Design+Construction, February 4, 2025
The Trump administration wants to sell two=thirds of the government’s office inventory to the private sector.
The General Services Administration manages 370 million sf of federal buildings nationwide. If the Administration follows through, GSA may cancel 70 million sf of leases in Washington D.C. alone. Read more
Trump rules about federal building designs roil AIA
Building Design+Construction, February 3, 2025
The American Institute of Architects took exception to executive orders signed by President Trump that will impact the designs of federal buildings.
Trump favors neoclassical design, and is said to want that preference to abide for procuring designs. AIA objected to mandates that would stifle innovation. Read more