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Tariffs are Driving Up Construction Costs and Putting Projects at Risk

June 17, 2025

Industry and Advocacy

Tariffs Are Driving Up Construction Costs

Increasing prices on steel, aluminum, and lumber, fueled by rising tariffs, are hitting the construction industry hard. For union carpenters, contractors, and developers, these cost hikes mean delayed timelines, tighter budgets, and fewer jobs. It is crucial to understand how tariffs are reshaping the construction industry. 

How Tariffs Increase the Cost of Construction Materials

Tariffs on imported materials like steel beams, plywood, drywall, and aluminum framing drive costs across the construction industry. When contractors pay more for essential building materials due to tariffs, it squeezes their bottom line and forces tough choices on wages, hiring, and project timelines. Eventually, those rising costs also hit consumers, resulting in higher home prices and reduced affordability. 

The Effect on Carpenters, Contractors, and Project Timelines

  • Higher costs for raw materials – Contractors adjust budgets, often leading to cutbacks or delays.
  • Increased project expenses – Developers pass costs to clients, making housing and infrastructure projects more expensive.

 

How Tariffs Affect Infrastructure and Housing Construction

The US is facing a housing shortage and urgent infrastructure repair needs. However, increased costs on materials like rebar, plywood, and framing lumber make it harder to complete projects on time and within budget. This affects everything from new home construction to major public works projects, potentially delaying much-needed repairs to roads, bridges, and schools.

What the Construction Industry Needs Instead of Tariffs

While the stated goal of tariffs is to promote domestic manufacturing, the reality is that the US  relies heavily on imported materials. Instead of adding financial strain through tariffs, the construction industry needs policies that promote fair trade, support American manufacturing, and invest in infrastructure without raising costs for workers and contractors.

The EAS Carpenters Union Stands for Fair Wages and Smart Policies

The Eastern Atlantic States Regional Council of Carpenters fights for fair wages, safe job sites, and policies that strengthen the construction industry and support workers. But rising material costs from tariffs threaten to slow projects, shrink paychecks, and weaken the industry’s backbone. 

We urge union members, industry leaders, and policymakers to stay informed and speak out against tariffs that drive up material costs. We need to protect skilled trades and push for policies that keep construction projects affordable, on time, and within reach.