Note: The tariff situation is constantly evolving. This page was last updated on 3/12/2025.
Overview
Tariffs are taxes imposed by governments on imported goods to protect domestic industries or generate revenue. They can be percentage-based or flat fees per unit. These taxes are paid at the point of entry into the United States by the importer of the products and affect the pricing of goods. Steel, aluminum, lumber, and electrical components are just some of the examples of the wide variety of construction materials that can be affected by import taxes and experience price fluctuations.
To help contractors navigate challenges related to possible tariffs, AGC is creating resources, educating the construction community, and advocating for contractors on key considerations on the potential impacts as it relates to construction.
AGC of America is working to provide contractors with the most up-to-date information on tariffs. Make sure to continue to check this page for the latest resources created to help contractors navigate tariffs.
Latest Industry Updates
AGC has been holding a series of WebEd webinars that takes a deep dive into tariffs. You can find links to past webinars below, or visit the AGC Events page to check for upcoming WebEd webinars on tariffs.
In addition, AGC developed a Tariff Memo outlining key considerations and potential impacts of the administration’s trade policies on the construction industry. It covers general circumstances that construction contractors may face in connection with an increase in tariffs and how contractors can work through them.
Latest Updates
Read the latest news on tariffs and how AGC is advocating for you
Learn More
Member-only resources for navigating tariffs
Current Situation
China - President Donald Trump imposed tariffs on imports from China that added an additional 10% tax on all goods coming into the United States. On March 4, 2025, he increased those tariffs by an additional 10%. These tariffs, which add an additional 20% import tax to all Chinese goods, are in effect now.
Mexico - Tariffs were going to be imposed on all good from Mexico at a rate of 25%. Most recently, the 25% tariff no longer applies to USMCA compliant products. These tariffs, which affect about 50% of all imports from Mexico, are currently in effect.
Canada - Tariffs were imposed on all goods from Canada at a rate of 25% except certain energy and critical minerals, which will be taxed at a rate of 10%. Most recently, these tariffs no longer apply to USMCA compliant products. These tariffs, which currently affect about 40% of all imports from Canada, are currently in effect.
February 10, 2025 - President Trump imposed tariffs on all steel and aluminum imports into the United States, to be effective starting March 12, 2025. These tariffs discard all previous deals and exclusions that were given when these tariffs were put in place during President Trump's first term. The notices by the administration point out that derivative steel and aluminum products will be subject to the tariff with the below materials as examples.
- Aluminum: windows/doors/frames, ladders, hinges, motor vehicle/building/other mountings/fittings, door parts, frames and mirrors (and parts), several categories of mechanical and electrical machinery.
- Steel: sheet pilings, rail parts, multiple categories of tube/pipe fittings, buildings, tanks/vats/casks, wire/rope/cable, barbed wire, nails/tacks, screws/bolts, pins and needles, radiators, sinks and basins, elevator parts, bulldozer blades, front-end loaders, rooters, rock cutters; plows (and parts), electrical conduit tubing.
February 13, 2025 - President Trump signed a Memorandum that calls for agencies to initiate "all necessary actions to investigate the harm to the United States from any non-reciprocal trade arrangements adopted by any trading partners," issue a report, and propose remedies. No new tariffs currently being proposed under the memorandum, but signaling that reciprocal tariffs are likely to come in the near future.
February 26, 2025 - President Trump signs Executive Order to begin investigation into the national security implications of copper imports into the United States. Results of the investigation and any tariffs that might follow are due November 2025.
March 1, 2025 - President Trump signs Executive Order to begin investigation into the national security implications of lumber and timber imports into the United States. Results of the investigation and any tariffs that might follow are due November 2025.
Impact of Tariffs
Tariffs have long been a critical tool in U.S. trade policy, affecting the construction industry in both direct and indirect ways. These measures are aimed at addressing trade imbalances and incentivizing domestic production, but they also carry risks of escalating costs, retaliatory trade measures, and further complicating global supply chains. For construction contractors, such policies could lead to stockpiling of materials, reconsideration of contracts, and pricing and scheduling uncertainty.
To have a better sense of what might be affected in a specific market with potential tariffs, contractors need to be aware of what products are imported and how much. A key consideration for contractors is that domestic equivalents to imported materials can experience a shift in additional demand due to tariffs and thus cause the price of domestic materials to fluctuate as well.
- Learn more about trade between the United States and Canada (Government of Canada)
- Learn more about trade between the United States and Mexico (Embassy of Mexico)
- Learn more about each mineral, how much the US produces and imports (US Geological Survey)
Tools and Resources
Contracts: ConsensusDocs Price Escalation Resources
Tariffs are likely to further contribute to volatility in the construction materials market. ConsensusDocs, has compiled resources to address price escalation. The best approach is to include price escalation provision, such as the ConsensusDocs 200.1 Material Price Escalation Amendment in your construction agreement at contract signing.
Import Trade Data: DataWeb: U.S. Trade & Tariff Data
The USITC DataWeb provides public access to the official U.S. import and export statistics of the U.S. Department of Commerce in a user-friendly web interface. Using the DataWeb querying tool, users can build custom queries and access these data in a spreadsheet or a web-based format to search for specific materials and how they might impact your business.
Webinar: The Art of Dealing with Tariffs
Discounted rate available for members. Input your name and email associated with your AGC of America account to retrieve the recording after registration.
The Trump Administration has issued three executive orders that will impose new tariffs on imports from Mexico, Canada, and China. Additional tariffs could be coming in the coming weeks; just the threat of tariffs can significantly impact costs and supply-chain availability. Donald Trump wrote the book on the "Art of the Deal." This webinar helps to write your playbook on how to equip your company with tactics to mitigate the cost and disruption impacts cause by new tariffs.
Webinar: Tariffs and Construction - What Federal and Federal-Aid Contractors Need to Know
Free for members. Input your name and email associated with your AGC of America account to retrieve the recording.
- Review the nuts and bolts of tariff regulations that impact direct federal and federal-assisted contractors;
- Reference key federal regulations and contract clauses;
- Discuss risks to subcontractors and supply chain;
- Discuss what contractors should be asking their owners;
Relevant Trade Actions:
- Executive Order on Canada: Imposing Duties to Address the Flow of Illicit Drugs Across Our Northern Border (The White House)
- Executive Order on Mexico: Imposing Duties to Address the Situation at Our Southern Border (The White House)
- Executive Order on China: Imposing Duties to Address the Synthetic Opioid Supply Chain in the People’s Republic of China (The White House)
- FAQ: President Trump’s Tariffs on Mexico, Canada, and China (The White House)
- Proclamation: Adjusting Steel Imports (The White House)
- Proclamation: Adjusting Aluminum Imports (The White House)
- Fact Sheet: Steel and Aluminum (The White House)
- Memorandum: Reciprocal Trade and Tariffs (The White House)
- Fact Sheet: “Fair and Reciprocal Plan” on Trade (The White House)
- Executive Order on Copper Import Investigation - Addressing The Threat To National Security from Imports of Copper (The White House)
- Executive Order on Lumber Import Investigation - Addressing The Threat To National Security from Imports of Timber, Lumber (The White House)
- Fact Sheet: "President Donald J. Trump Proceeds with Tariffs on Imports from Canada and Mexico" (The White House)