Construction industry
worries about Trump’s steel,
aluminum tariff plans
North Carolina Construction News staff writer
The construction industry is worried about President
Donald Trump’s announcement of a 25 percent tariff on
steel and a 10 percent tax on aluminum imported to the
United States.

The policy will increase the construction costs, ac-
cording to construction experts. Ultimately, the extra
costs could make it harder for future projects to get
completed. “Rising construction costs, along with labor costs
and bank financing constraints, have been a significant
factor in limiting property development over the course
of this [economic] expansion,” Sam Chandan, the asso-
ciate dean at the New York University’s Schack Institute
of Real Estate, said in a statement to Commercial Ob-
server. “Policies that add to cost pressures exacerbate
drags on new supply.”
While making foreign steel more expensive via taxes
could mean companies may further use domestic steel,
the U.S. industry will not have the supply to keep up
with the demand, said Louis Coletti, the president and
CEO of the Building Trades Employers’ Association.

“The U.S. steel manufacturers cannot produce the
quantity of steel needed. Steel manufacturers are al-
ready telling contractors to expect price increases,” Co-
letti said. “The lack of steel availability will also cause
scheduling delays that will add to additional cost in-
creases. This policy will have a detrimental impact on
the economic growth of [New York] and the nation.”
The National Association of Home Builders (NAHB)
also issued a statement regarding President Trump’s
announcement to impose tariffs on steel and aluminum
imports. “It is unfortunate that President Trump has decided
to impose tariffs of 25 percent on steel imports and 10
percent on aluminum imports. These tariffs will trans-
late into higher costs for consumers and U.S. busi-
nesses that use these products, including home
builders,” NAHB chairman Randy Noel said, adding that
“given that home builders are already grappling with 20
percent tariffs on Canadian softwood lumber and that
the price of lumber and other key building materials are
near record highs, this announcement by the president
could not have come at a worse time.”
“Tariffs hurt consumers and harm housing affordabil-
ity. We hope the administration will work quickly to re-
solve these trade disputes regarding lumber and steel
so that businesses and consumers have access to an
adequate supply at a fair market price,” Noel said.

The North Carolina Construction News — March-April 2018 — 3