Uncertain U.S. Trade Policy Poses Threat to Construction Prices
On May 30, President Trump announced that his administration plans to impose a five percent tariff on all imported goods from Mexico beginning June 10. Mr. Trump stated that this tariff rate would gradually increase by five percent each month up to a 25 percent rate until Mexico addresses the flow of undocumented immigrants crossing the U.S.-Mexico border. Additional tariffs on Mexico will likely contribute to a further increase in construction costs that other Trump administration trade policies, such as steel and aluminum tariffs, have caused. Ever-changing U.S. trade policy has made it difficult for contractors to estimate project costs accurately, while retaliatory actions by U.S. trading partners have cut into demand for construction by exporters, their suppliers, and their logistics and transportation partners. For a full run-down of all construction industry-related trade actions under the Trump administration, click here.
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