President Donald Trump’s proposed tariffs on construction materials, including steel, aluminum and lumber, could increase costs for developers by up to 10%, particularly affecting large projects like high-rise buildings, condos, and government infrastructure.
The tariffs, set at 25%, may hit steel-intensive projects the hardest. Smaller projects might reduce costs by using alternative materials like shipping containers for commercial properties and affordable housing.
While the tariffs come as material costs were stabilizing, they could eventually help U.S. steelmakers become more competitive, potentially stabilizing prices in the long run.
Reference
Fabris P. (2025) Tariffs could raise building costs by as much as 10%. Building Design and Construction. March 6.