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Riding the Tariff Roller Coaster: Considerations for Construction

Riding the Tariff Roller Coaster: Considerations for Construction

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“What goes up might take us upside down. Life ain’t a merry-go-round; it’s a roller coaster.” – Bon Jovi

The song may not have been about international trade, but the lyrics are certainly fitting for today’s unpredictable global market. The construction industry is already particularly impacted by the volatility of tariff rates, product exemptions and affected countries, which seem to shift almost daily. To succeed, construction companies, owners and developers must navigate this uncertainty carefully.

Since “living on a prayer” is not a great business strategy, we’ve provided some key considerations for building in this rapidly changing environment—and practical steps you can take to manage risks.

How Will Tariffs Impact Construction Projects?

Tariffs can affect construction projects at nearly every stage, from procurement to financing to final delivery. Some of the primary areas affected include: 

What Evidence Supports the Impact Tariffs Have on Construction?

Several recent indicators highlight how tariffs are already influencing the construction market: 

Considering the Impact of Tariffs: Should You Build Now or Wait?

With tariffs introducing heightened uncertainty into material costs, supply chains and project timelines, many owners and developers are grappling with a key strategic question: Is it smarter to move forward with construction now or hold off in hopes of more favorable conditions?

What Are the Reasons to Build Now?

With so much volatility in the market, there are several compelling advantages to starting construction sooner rather than later. Key reasons include: 

What Are the Reasons to Wait? 

For some, holding off on a project may offer strategic benefits as market conditions continue to evolve. Reasons to consider delaying construction include: 

Ultimately, the decision to build now or later should weigh current project needs against anticipated market shifts—and include contingency planning for both scenarios.

What Steps Can You Take to Mitigate Risks in the Construction Process?

Regardless of timing, proactive risk management strategies can help protect your project from tariff-related volatility. The following are key approaches construction companies, owners and developers can take to better navigate today’s unpredictable environment: 

You’re Not Alone in Navigating the New Normal

While tariffs have introduced new challenges for the construction industry, thoughtful planning, flexible strategies and carefully crafted contracts can help mitigate many of the risks. Whether you choose to move forward with your project now or wait for greater market clarity, it’s essential to have the right team and protections in place.

If you have questions about how tariffs may impact your construction project or would like to discuss strategies to mitigate risk, please contact a member of Gould & Ratner’s Construction Practice.

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