against Canada, Mexico, China and the European Union have quickly changed that trajectory as contractors scrambled to buy up goods before those added fees went into effect.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\nNow, another impact of those policy changes is playing out, according to ABC, because reduced competition from foreign producers gives American manufacturers the ability to raise prices at home.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n\u201cIron and steel prices rose at a particularly fast rate in February, a result of tariffs providing domestic producers with increased pricing power,\u201d said Basu, who added that prices \u201chave risen at a far-too-hot 9% annualized rate through the first two months of 2025.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\nAlthough ABC\u2019s Construction Confidence Index, which measures how contractors feel about business prospects over the next six months, has remained positive, 23% of surveyed builders now expect their profitability to decline over the next half year, Basu said. That\u2019s the highest share of pessimism since October.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n\n\n
![\"A](\"https:\/\/imgproxy.divecdn.com\/P-H17074KvsyfILWYAogj5MEvUJe43b_EpRwcq3OiWQ\/g:ce\/rs:fit:1600:0\/Z3M6Ly9kaXZlc2l0ZS1zdG9yYWdlL2RpdmVpbWFnZS9QUElfVGFibGVfMy4xMy4yNS5qcGc=.webp\"\/)
<\/div>\n<\/div>
\nCourtesy of Associated Builders and Contractors<\/p>\n
\u00a0<\/p>\n<\/figcaption><\/figure>\n
Iron and steel jumped 3.9% in February, while softwood lumber prices surged 2.8%. Steel mill products posted a similar gain of 2.7%.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\nUnfortunately, these jumps could be just the beginning, according to Ken Simonson, chief economist at the Associated General Contractors of America.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n\u201cIt\u2019s a bad sign that construction costs have been rising significantly even before most of the Trump administration\u2019s tariffs have taken effect,\u201d said Simonson in a news release emailed to Construction Dive. \u201cNow that many tariffs that hit construction materials are in effect, with more measures pending, construction costs are likely to rise much more.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\nSimonson told Construction Dive there are additional reasons for trepidation now, as additional consequences will likely hit the market.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n\u201cI’m worried about the impact of retaliatory measures,\u201d he said about other countries imposing fees on U.S. products, which will hurt exports.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n\u201cForeign retaliation makes U.S. products uncompetitive or bans them altogether,\u201d Simonson said. \u201cThese impacts will cause businesses and individuals to lose income, hurting demand for structures and their purchases.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/p><\/div>\n[ad_2]
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