Tariffs struck down – construction still on edge

Construction contractors may see modest reductions in materials costs after the Supreme Court rejected Trump's reciprocal tariffs. But with lumber, steel and aluminum tariffs still in place, uncertainty remains high.

The Supreme Court’s decision to strike down most of President Trump’s reciprocal tariffs will offer some relief for construction contractors. But experts warn the effect may be short-lived, Construction Dive reports.

The 6-3 ruling removes a key tariff mechanism, driving “a modest but meaningful reduction in materials price escalation” for specialty equipment, HVAC and electrical systems, according to Anirban Basu, chief economist at Associated Builders and Contractors.

But tariffs on lumber, steel, aluminum and copper remain in place. The Trump administration has also signaled plans for alternative tariff methods, leaving the industry in a state of uncertainty.

“This yo-yo effect of tariffs created a lot of chaos,” said Brian Kassalen, principal at construction advisory firm Baker Tilly. “If the Trump administration does go back and pursue other means to try to reimpose these tariffs, that does create uncertainty, which contractors and project owners alike don’t like.”

Contractors hoping for refunds on materials purchased during the past year should temper expectations. The Associated General Contractors of America has told its members not to count on reimbursements.

“We have been cautioning our members for some time now that it is unlikely they will see any refunds for materials purchased during the past year,” said Brian Turmail, AGC’s vice president of public affairs, in an email to Construction Dive.