Could Tariffs Affect Materials Costs? Let Us Know!

What’s happening: President Donald Trump Feb. 13 signed a memo on reciprocal trade that orders federal agencies to look at balancing U.S. tariffs with those of other countries. The directive stopped short of imposing tariffs right away, but it’s just the latest in a string of presidential directives in the last two weeks that he says will stem trade deficits with other nations. Trump previously announced a 25 percent tariff on steel and aluminum imports worldwide Feb. 9, as well as country-specific orders relating to goods from Canada and Mexico (25 percent) and China (10 percent) Feb.1.

Why it matters:  It’s important to note that with the exception of China, each of these tariffs has yet to take effect. President Trump has delayed imposing tariffs on Canada and Mexico for a month, and the levies on imported steel and aluminum aren’t effective until March.

While contractors on federal-aid highway and transit projects must already use domestically-produced steel and aluminum to meet Buy America requirements, ARTBA is watching to see if the tariffs will increase demand for U.S. products from other construction sectors who have more leeway in sourcing materials.

What’s next: To further our understanding of evolving transportation construction marketplace dynamics, ARTBA would appreciate member feedback on developments such as price and availability trends, windows for guaranteed pricing, and contractors’ views of related risks. Please contact Rich Juliano or Josh Hurwitz with any insights on these issues.