The Trump administration has raised tariffs on all Canadian imports from 25% to 35%, with a 50% tax on imported semifinished copper products, directly impacting construction materials like aluminum, steel and lumber. Additional updated tariff rates for dozens of countries take effect August 7, while China and Mexico received 90-day extensions to negotiate trade deals. Though these tariffs will affect construction costs and deal underwriting, the market appears to be moving forward with an acceptance of ongoing uncertainty.

Andrew Hime, head of procurement at Clune Construction, said the key to keeping up with the tariff-related pricing impacts has been to build tools that increase pricing visibility and transparency throughout the supply chain. That allows the company to make sure that its bids are a true representation of what is changing within the marketplace.

But while it may be easier to map out direct costs of certain materials due to tariffs, the wider-ranging implications on costs like labor and equipment are still being fleshed out.

“I think the industry will evolve and require more strategic procurement planning, more strategic investment in looking at how to be able to maximize the supply chain and de-risk and validate costs to make sure that there aren’t bad actors out there,” Hime said.

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