{"id":31424,"date":"2025-07-20T06:56:37","date_gmt":"2025-07-20T13:56:37","guid":{"rendered":"https:\/\/essential.construction\/news\/construction-costs-rise-as-tariff-clock-ticks\/"},"modified":"2025-07-20T06:56:37","modified_gmt":"2025-07-20T13:56:37","slug":"construction-costs-rise-as-tariff-clock-ticks","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/construction-costs-rise-as-tariff-clock-ticks\/","title":{"rendered":"Construction costs rise as tariff clock ticks"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div>\n<div class=\"text-to-speech\">\n    <button class=\"text-to-speech__button button\"><br \/>\n        <img decoding=\"async\" class=\"text-to-speech__button__icon\" src=\"https:\/\/www.constructiondive.com\/static\/img\/play.svg?500116090725\" alt=\"-\"><br \/>\n        Listen to the article<br \/>\n        <span class=\"text-to-speech__button__audio-length\">4 min<\/span><br \/>\n    <\/button><\/p>\n<div class=\"text-to-speech__controls\">\n        <audio controls=\"\" class=\"js-text-to-speech\" preload=\"none\"><source src=\"https:\/\/res.cloudinary.com\/dmgi9movl\/video\/upload\/q_1\/v1752762038\/news\/text_to_speech\/construction-costs-june-2025-tariff_owumnw.wav\" type=\"audio\/mp3\"><\/source><\/audio><\/p>\n<div class=\"text-to-speech__controls__text\">\n            This audio is auto-generated. Please let us know if you have <a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/contact\/\" target=\"_blank\">feedback<\/a>.\n        <\/div>\n<\/p><\/div>\n<\/div>\n<h3>Dive Brief:<\/h3>\n<ul>\n<li><a rel=\"nofollow noopener\" href=\"https:\/\/www.abc.org\/News-Media\/News-Releases\/abc-nonresidential-construction-materials-prices-up-25-year-over-year-43-since-february-2020\" target=\"_blank\"><span><span><span><span><span><span><span>Construction input prices ticked up 0.2%<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> in June, driven by increases in key materials such as copper and fabricated structural metal products, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics\u2019 Producer Price Index data.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span>Input costs now sit 2.1% higher overall and 2.5% higher for nonresidential construction compared to a year ago, according to the report. Through the first half of 2025, nonresidential prices climbed at a 6% annualized rate.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span>The June data predates the steepest tariffs set to take effect Aug. 1, leaving contractors bracing for more volatility as additional duties loom.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<\/ul>\n<h3>Dive Insight:<\/h3>\n<p><span><span><span><span><span><span>Contractors absorbed another <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.agc.org\/news\/2025\/07\/16\/nonresidential-construction-materials-and-services-costs-accelerate-again-june-industry-awaits\" target=\"_blank\"><span><span><span><span><span><span><span>round of steady cost increases<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> in June, even before the most aggressive tariffs take hold later this summer, according to the Associated General Contractors of America.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Aluminum mill shapes climbed 6.3% over the past year, steel mill products rose 5.1% and lumber and wood products increased 4.8%, according to the report. More extreme increases hit certain structural steel components, including a 22.5% spike in fabricated metal for bridges and 8.3% for bar joists and rebar.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cThe fact that construction materials prices are rising even before the steepest proposed tariffs have taken effect doesn\u2019t bode well for what will happen in August if the promised new tariffs are implemented,\u201d said Ken Simonson, AGC chief economist. \u201cRising construction costs and economic uncertainty are already causing some owners to put projects on hold, which will only get worse if costs jump again.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>The Trump administration raised <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/new-steel-aluminum-tariffs-push-construction-costs-higher\/749931\/\" target=\"_blank\"><span><span><span><span><span><span><span>steel and aluminum tariffs to 50%<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> last month and plans to impose a similar <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.supplychaindive.com\/news\/us-levy-50-copper-tariffs-aug-1\/752683\/\" target=\"_blank\"><span><span><span><span><span><span><span>50% duty on copper<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> on Aug. 1. <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.supplychaindive.com\/news\/trump-tariffs-status-canada-mexico-china-eu\/743577\/\" target=\"_blank\"><span><span><span><span><span><span><span>Broader import restrictions<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> also still remain under consideration.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><img decoding=\"async\" alt=\"-\" src=\"https:\/\/www.abc.org\/Portals\/1\/CEU\/PPI_Table_7.16.25.jpg?ver=Y69E1rshcSIhI-Ice-4WKQ%3d%3d\"><\/p>\n<p><span><span><span><span><span><span>At the same time, inflation appears once again to be gaining momentum. Core good prices, excluding automobiles, increased at their fastest pace since late 2021 in the <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.cfodive.com\/news\/inflation-rises-companies-shift-tariff-costs-consumers-Trump-tariffs-Powell-Fed\/753136\/\" target=\"_blank\"><span><span><span><span><span><span><span>June Consumer Price Index report<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>, signaling additional risk for contractors on the horizon, said Anirban Basu, ABC chief economist.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cNonresidential input price escalation has accelerated in 2025,&#8221; said Basu. \u201cWhile it is unclear how and when trade policy will affect construction materials prices, the impact was evident in June\u2019s CPI release.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Nevertheless, Basu said many <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/backlog-june-data-center-construction-boom\/753126\/\" target=\"_blank\"><span><span><span><span><span><span><span>contractors remain upbeat<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> about their margins. That outlook may reflect federal tax changes under the <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/big-beautiful-bill-construction-industry-impact\/753038\/\" target=\"_blank\"><span><span><span><span><span><span><span>One Big Beautiful Bill Act<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>, which made 100% bonus depreciation permanent and helped offset some pressure from rising input costs.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201c<\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/tariffs-contractors-guessing-material-costs-uncertainty\/752908\/\" target=\"_blank\"><span><span><span><span><span><span><span>Economic uncertainty<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> remains extraordinarily elevated,\u201d said Basu. \u201cWhat is all but certain is that the Federal Reserve will not be cutting interest rates at its July meeting. Despite higher-for-longer interest rates and rising input prices, contractors remain relatively optimistic.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Still, AGC officials warn confidence may erode if tariff-driven increases persist. If costs spike too sharply, more developers may choose to delay or cancel projects outright, according to the report.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cThe construction industry is poised to benefit from greater tax certainty as well as the administration\u2019s efforts to streamline permitting and reduce needless regulatory burdens,\u201d said AGC CEO Jeffrey Shoaf in the release. \u201cFinding a way to provide greater certainty on materials prices is the best way to make sure the new tax and regulatory approach have the best possible impact on economic activity.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/p><\/div>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/www.constructiondive.com\/news\/construction-costs-june-2025-tariff\/753255\/\" rel=\"nofollow noopener\" target=\"_blank\">This article was originally posted at Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] Listen to the article 4 min This audio is auto-generated. 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Dive &#8230; <a title=\"Construction costs rise as tariff clock ticks\" class=\"read-more\" href=\"https:\/\/essential.construction\/news\/construction-costs-rise-as-tariff-clock-ticks\/\" aria-label=\"Read more about Construction costs rise as tariff clock ticks\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[457],"tags":[],"class_list":["post-31424","post","type-post","status-publish","format-standard","hentry","category-construction-dive","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/31424","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/comments?post=31424"}],"version-history":[{"count":0,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/31424\/revisions"}],"wp:attachment":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/media?parent=31424"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/categories?post=31424"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/tags?post=31424"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}