New Tariffs Impacting Construction

Construction leaders are no strangers to rising costs and shifting timelines, but the latest wave of global tariffs is throwing another wrench into the works. When material prices spike unexpectedly, it’s not just a finance issue, it’s an operations issue. Procurement, estimating, contracting, and job costing all feel the impact.

And if those areas aren’t aligned and responsive, profit fade can creep in fast. Now’s the time to pressure test your processes, shore up your contracts, and double down on forecasting discipline. Let’s break down what’s changing and how your business can roll with the punches.

So, what is happening with the tariffs?

In recent days, the U.S. government has announced increased tariffs on a variety of goods imported from countries like China, Mexico, Vietnam, and Canada. These changes are intended to protect domestic manufacturing. Contracts are in continuous negotiations, but here are the current rates as of May 27th, 2025:

These materials are foundational to both commercial and industrial projects. The implications? Contracts signed just a few months ago could already be at risk of profit fade if operating strategies haven’t kept pace.

What Can You Control? A Lot More Than You Think.

While rising tariffs can feel like a cause for concern, this is also a time to spot opportunities and strengthen your business strategy. There’s not enough knowledge on the direct impact, and therefore, there’s no need to panic. With the right preparation and planning, you can protect your margins and position your company to push through this challenge.

Tariffs aren’t something construction companies can control, but profit fade is. By proactively adjusting your contracts, cost tracking, procurement practices, and tax planning, you can turn a potential hit into a manageable risk. We’re here to help you keep your financial game strong, no matter what global markets throw your way.