US CONSTRUCTION RACES TO BEAT TRUMP’S TARIFFS

Trump’s proposed tariffs – up to 20% on all imports and 60% on Chinese goods – have spurred urgency among contractors. “I suspect among many contractors, there is a rush to buy critical materials and equipment before tariffs might have any impact on prices,” Anirban Basu, chief economist of the Associated Builders and Contractors, said to the Boston Business Journal, noting the surge in demand could ironically drive up near-term prices.

The stakes are especially high for materials sourced from China, which supplies about 18% of U.S. imports, including essential building materials like drywall. Unlike Trump’s first term, when targeted tariffs on steel and aluminum were offset by low interest rates, today’s higher financing costs leave less room for absorbing price increases.

Labor availability presents another critical concern. The Boston Business Journal noted, citing data from the National Immigration Forum, that immigrants comprise roughly 30% of the U.S. construction workforce, reaching 40% in states like California and Texas.

Construction industry leaders are moving quickly to secure materials and labor ahead of potential policy changes under President-elect Donald Trump that could impact project costs and workforce availability.

Source: Yahoo