Who foots the bill if tariffs raise a projects construction costs?
archinect.com
On March 12th, the United States is set to introduce a 25% tariff on all steel and aluminum entering the country. The move, announced by President Trump this week, is one of several tariff measures floated by the new administration in the past month, including pending reciprocal tariffs on countries that charge duties on U.S. imports, and ultimately delayed tariffs on Canada and Mexico.Archinect has already reported on the potential impact of tariffs on construction spending and construction costs. Given the likelihood that tariffs will form a significant part of U.S. trade policy throughout the next four years, it is therefore worthwhile for architects to investigate how higher prices for imported materials, whether lumber from Canada or steel from China, will be absorbed into the budgets of ongoing construction projects.Specifically, architects performing the role of contract administrator between the client and contractor may encounter a situation where tariffs are imposed on ...
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