Tariffs ‘threaten� US construction, trade group says

The Associated General Contractors of America (AGC) � in analysis of annual jobs data � said US President Donald Trump’s ‘Liberation Day� tariffs implemented on 2 April “threaten to cause cancellations and job losses�.

A crane moves a steel coil (Image: Adobe Stock) A crane moves a delivery of steel coil. Steel is likely to see a price surge in the short term if President Trump’s proposed 25% tariffs on Canada and Mexico are enacted. (Image: Adobe Stock)

Ken Simonson, the organisation’s chief economist, said, “Falling business and consumer confidence, along with rising costs from tariffs, are causing projects to be delayed or cancelled.

“These challenging conditions are leading to less widespread job growth than previously.�

AGC is a construction trade association representing more than 27,000 industry firms, including general contractors, service providers and suppliers.

Looking at the jobs data, just more than half (189) of the US� metro areas (360, in total) reported construction employment increases between February 2023 and this year.

The US State of Florida had three metros in the top five among those with the highest total gain of workers: Miami, Orlando and Tampa metros. Metros reporting the most job losses were Los Angeles, New York and Oakland, respectively.

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Association officials said the number of metros with construction employment gains has slowed from a year ago. AGC warned tariffs will make construction more expensive and are likely to trigger “retaliatory measures that harm US businesses and workers, leading to further cutbacks in construction.�

AGC chief economist Ken Simonson (Image: Mitchell Keller) Associated General Contractors of America (AGC) chief economist Ken Simonson presents to the AGC Greater Milwaukee chapter in Wisconsin, US. (Image: Mitchell Keller)

AGC urged the Trump administration to reduce or eliminate tariffs as soon as possible to limit harm to contractors, other businesses, and consumers.

AGC CEO Jeffrey Shoaf said, “Now that the president has provided specific details about his tariff plans, the private sector can decide how best to proceed with planned projects.

“Our hope is that the benefits of greater clarity and supply chain certainty outweigh the impacts of higher materials prices and construction costs.�

The chief executive officer of the National Utility Contractors Association (NUCA), Doug Carlson, also called on the President to reconsider his strategy on tariffs.

“America’s underground utility construction industry is literally building America’s foundations for renewed economic growth and success across every industry. Much of our federally-funded work through recent infrastructure laws is already subject to domestic procurement requirements. But the macroeconomic effects of these new tariffs will drive up construction materials prices and make it challenging to meet the increased demand for domestically made components on all public and privately funded projects.�

“Our nation’s construction industry relies on an interconnected global supply chain for its essential materials. Many domestically manufactured products rely on some percentage of foreign goods, especially inputs that are not available domestically. Even for those that are available, the supply chain will not reassert itself overnight. 25% of steel from non-domestic sources, and the specialised iron and steel products used in underground utility projects, are essential to our industry’s projects and their efficient completion. And roughly half of America’s aluminum comes from foreign sources. It will take significant time for domestic US supply to catch up to demand.�

He added that, “NUCA urges the Trump Administration to consider exemptions for critical infrastructure materials, at least with regards to those used in domestic infrastructure projects and supply chains.â€� 

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