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.
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, Feb. 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, Feb. 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