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Will the 90-day tariff pause lower the cost of building in 2025 - or just delay the inevitable? Here's what builders, contractors, and developers should know.
Quick Answer
The 90-day pause on tariffs in early 2025 offers a short-lived reprieve for the construction industry, especially on steel, aluminum, and Chinese-sourced materials. However, developers should be wary of potential price rebounds, material hoarding, and shifting supplier relationships once the pause expires.
What’s New for the Construction Industry in 2025?
Following the temporary suspension of select tariffs by former President Trump, several categories critical to construction have seen price relief and improved availability. While this isn’t a permanent fix, it does offer a brief opening for cost savings - if you act quickly and plan smartly.
Tariffs currently paused include:
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Structural steel
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Sheet aluminum
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Electrical components
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Copper wiring
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Some manufactured tools and machinery
These items are foundational to both residential and commercial projects, and the short-term impact can ripple across the entire supply chain.
Top Ways the Tariff Pause Is Impacting Construction
1. Material Pricing: A Temporary Dip
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Steel framing, rebar, and aluminum panels have seen 5–12% pricing shifts since the pause.
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Some suppliers are offering short-term deals to move existing inventory.
2. Contractor Strategy: Accelerated Purchasing
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Many GCs are front-loading material buys during this window.
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Bulk orders and warehousing are on the rise for projects set to break ground later in 2025.
3. Project Scheduling: Shifting Timelines
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Developers may pull forward construction phases to capitalize on lower input costs.
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Delays in permitting or labor could still undercut these gains if not managed carefully.
Example: Residential vs. Commercial Impact
Residential
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Custom home builders can benefit from savings on HVAC units, electrical wiring, and structural beams - especially if imported.
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Prefab home manufacturers sourcing modules overseas may see reduced shipping or component costs temporarily.
Commercial
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Office buildings, warehouses, and data centers often use large quantities of aluminum and copper - areas where tariffs hit hardest.
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MEP contractors (mechanical, electrical, plumbing) may see modest savings on imported systems.
Risks After the Pause: What to Watch
The tariff suspension lasts 90 days—not forever. Here's what could follow:
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Price rebounds or spikes once tariffs return
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Vendor hoarding or delays if suppliers anticipate future cost jumps
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Shift toward domestic sourcing, which may carry longer lead times or higher base costs
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Contract renegotiations if original material estimates change mid-project
Planning Ahead: Smart Construction Tactics in a Volatile Trade Environment
To manage risk while optimizing your budget:
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Negotiate with material suppliers now for pricing guarantees or flexible terms.
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Use escalation clauses in contracts to account for possible tariff reinstatements.
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Consider partnering with logistics firms that specialize in importing regulated materials.
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Stay informed through industry trade alerts and supply chain briefings.
Final Thoughts
The 90-day pause on construction-related tariffs offers a brief but meaningful opportunity to cut costs or stabilize budgets. However, it’s not a long-term solution - developers and contractors need to act decisively and plan contingently.