President Donald Trump’s ever-changing tariff policies are projected to significantly impact the housing and construction markets. New tariffs on materials from Canada, Mexico, and China—including a 50% tariff on steel and copper and a 25-35% tariff on lumber—are expected to increase costs and decrease the number of new projects.
According to Calum Mair, commercial director North America for EPD, a supplier of machinery parts, businesses need to be proactive to survive this volatile market. Mair outlines several strategies for businesses to navigate these challenges:
- Diversify the Supply Chain: Reduce dependence on foreign imports by sourcing materials domestically or from countries with lower tariff rates. Businesses should also consider stockpiling essential materials to prepare for potential price hikes and supply chain disruptions.
- Master Cash Flow Management: With interest rates remaining uncertain, businesses should prioritize cash flow management and explore alternative funding options to reduce reliance on loans. Locking in favorable rates and staggering project timelines can also help mitigate financial risks.
- Prioritize Equipment Maintenance: Proactive, preventative maintenance of machinery can help avoid costly breakdowns, project delays, and the need for expensive replacements. This practice helps control costs and keeps projects on schedule.
Mair emphasizes that by diversifying supply chains, practicing proactive financial planning, and prioritizing equipment longevity, construction businesses can combat the negative effects of these new tariffs and market uncertainties, ensuring the stability and success of future projects.
Reference
Building Enclosure. (2025, August 18) How to Stay Ahead of Trump’s Copper Tariffs.