It starts like this:
A developer breaks ground on a long-awaited commercial build. The plans are drawn, the crews are ready, and the budget - tight but doable - is locked in.
Then comes the call.
“Steel prices just went up. Again.”
What should’ve been a straightforward project is suddenly on shaky ground. Material costs are climbing. Timelines are slipping. The numbers no longer add up. And it’s not just this project - it's happening everywhere.
Welcome to the new reality of building in America, where US tariffs are reshaping the industry from the ground up.
Once upon a time, sourcing materials was routine. Steel from Canada, softwood lumber from Mexico, aluminium from China - it all flowed steadily into ports, keeping builds on track and costs predictable.
Then tariffs hit.
Suddenly, essential imports became significantly more expensive. Materials like:
- Structural steel and rebar
- Aluminium for ductwork and fittings
- Lumber and gypsum for framing and drywall
Small construction firms - already walking financial tightropes - were among the first to feel the squeeze. Bigger companies tried to absorb the costs. Many had no choice but to pass them on.
And homeowners? They’re footing the bill, too.
Imagine planning a project down to the last bolt - only to discover those bolts are stuck in customs or cost double what they did last month.
That’s now a common scenario.
Tariffs are disrupting global supply chains, and the ripple effect is causing:
- Delays in material delivery
- Revisions to previously approved budgets
- Scrapped or scaled-down projects
Some developers are pausing altogether, waiting for clarity that may never come.
It's not just commercial builds. Tariffs are trickling down to new home buyers and even homeowners looking to remodel.
Here’s how:
- Higher construction costs = more expensive homes
- Increased project costs = fewer renovations
- Decreased demand = a housing market under pressure
A family looking to remodel their kitchen might now face an inflated quote. A first-time buyer may be priced out of the market altogether.
What once was affordable is becoming aspirational.
The tariffs haven’t just raised prices—they’ve also sparked retaliation from other countries. That means materials from Europe, Asia, even neighboring Canada and Mexico, are harder to get or more expensive to buy.
For builders and developers, this has created:
- Uncertainty in long-term planning
- Less diversity in suppliers
- Increased risk in every estimate and proposal
Planning a project now involves more guesswork than ever.
A surprising amount. Here's a snapshot of key building materials that are regularly imported:
- Steel and aluminium – from China, Mexico, Canada
- Softwood lumber – especially from Canada
- Gypsum – essential for drywall
- Wood products – for framing, flooring, and finishes
- Stone, concrete, and cement blocks – from India, Vietnam, Italy, and others
In short: the bones of many American buildings come from abroad. And tariffs are now tightening that flow.
Whether you're an architect, developer, or builder, you're likely feeling these shifts already. But what happens next depends on how prepared you are.
✅ Are you factoring in cost volatility during planning?
✅ Can you source materials locally or diversify your suppliers?
✅ Are you clearly communicating rising costs to clients?
Tariffs aren’t just a policy—they’re a pressure point. One that’s pushing the building industry to adapt, pivot, and rethink how it builds for the future.
Need help navigating this evolving landscape?
We’re here to keep you informed - and help you stay ahead.
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