As construction companies across the country use up their remaining stockpiles purchased before Liberation Day – the implementation day of President Trump’s package of widespread tariffs – rising construction costs are beginning to disrupt public and private-sector construction projects.

ConstructConnect reported that the Project Stress Index, which measures delayed bid dates, projects on hold, and preconstruction abandonments, increased by 19.9% from October to November this year. This marks a 9.9% increase compared to November of last year. Both public and private sectors remain well above historic averages for abandonments and have maintained elevated levels throughout most of the year, reflecting the economic uncertainty that has characterized the construction industry in 2025.

The Associated General Contractors of America (AGC) has compiled a Tariff Resource Center that shares the latest updates on tariffs affecting the construction industry. They define a tariff as “taxes imposed by governments on imported goods to protect domestic industries or generate revenue. They can be percentage-based or flat fees per unit. These taxes are paid at the point of entry into the United States by the importer of the products and affect the pricing of goods.”

The main tariffs impacting the construction industry are: steel (50% tariff), aluminum (50% tariff), lumber (10-25% tariff), and copper (50% tariff). These tariff material costs can stack with a country’s tariff percentages and reciprocal tariffs.

Countries like Japan, the EU, the UK, and others have made trade deals that have lowered their tariffs, which range from 10% to 20%. Some tariffs are limited in how they can stack. The following countries and materials have limits on how tariffs can stack: Mexico, Canada, Steel, Aluminum, and Autos and Auto Parts.

Examining tariff rates offers insight into why projects have been abandoned or delayed at an increasing rate for both public and private entities. It also clarifies why some contractors cannot honor their original bid prices. Project stress indicators are likely to continue rising as pre-Liberation Day supplies dwindle and material costs increase.

As always, the Ohio Laborers’ Training & Apprenticeship Program and all Ohio Laborers’ Funds continue to fight to maximize Ohio projects and prosperity for its members, no matter the circumstances. We will continue to train, equip, and advocate as Ohio rides the impact of the current administration’s executive orders.

Citations:

https://news.constructconnect.com/project-stress-index-rises-sharply-in-november

https://www.agc.org/tariff-resources-contractors

https://www.constructiondive.com/news/tariffs-surge-construction-project-stress/807348/

https://globaltradealert.org/blog/US-Tariff-Stacking-Explained