The 25 percent tariff on imported steel and 10 percent tariff on imported aluminum President Trump imposed will dramatically increase construction costs and result in lost jobs across the construction and buildings sector, according to several industry experts including the right-leaning Cato Institute. “Protecting American steelmaking may make for good politics, but it’s a recipe for significant losses for the American economy,” wrote two Cato analysists in a recent post on the organization’s website.
The tariffs could also lead to job delays and scaled-back developments due to it being more difficult to get materials. HVAC manufacturers will also likely pass on cost increases for production to buyers.
Foreign steel and aluminum represent 23 percent of the U.S. market, according to Investopedia.
The American Institute of Architects’ President Carl Elefante, FAIA, and EVP/Chief Executive Officer Robert Ivy, FAIA, released a statement denouncing the tariffs as harmful to American interests:
“The Administration’s announcement of new tariffs on steel and aluminum imports threatens to drastically increase the prices of many building materials specified by architects. These metal products are some of the largest material inputs in the construction of buildings. Structural metal beams, window frames, mechanical systems and exterior cladding are largely derived from these important metals.
As creative problem solvers, architects rely on a variety of these materials to achieve functional and performance goals for their clients. Inflating the cost of materials will limit the range of options they can use while adhering to budgetary constraints for a building.
By the same token, the Administration’s proposed infrastructure funding will not achieve the same value if critical materials become more expensive. Furthermore, the potential for a trade war risks other building materials and products. Any move that increases building costs will jeopardize domestic design and the construction industry, which is responsible for billions in U.S. Gross Domestic Product, economic growth, and job creation.”
Greg Zimmerman is senior contributing editor for FacilitiesNet.com and Building Operating Management magazine.
