Trump 2.0: Tracking the Trump administration's impact on the U.S. building construction industry
By BD+C Staff
The Building Design+Construction editorial team created this newsfeed to help keep you up to date on the latest news and commentary related to the Trump administration's impact on the U.S. building construction industry. This newsfeed will be updated daily.
Flurry of tariffs is causing confusion among contractors
Associated General Contractors of America, March 17-21, 2025
In its weekly Data Digest, AGC reports “confusion and uncertainty” over items, parts, and derivative products subject to recently imposed tariffs of 10% on all imports from China (effective March 4, following earlier 10% tariffs on February 4); 25% on many items from Canada and Mexico (March 4, 10% on oil and gas); and 25% on all steel and aluminum (March 12). Read more
Federal Reserve keeps interest rates unchanged
USA Today, March 19, 2025
The Fed kept its forecast for two cuts in 2025 as officials struggled to respond to the double-barreled threats spawned by President Donald Trump’s widening trade war – rising inflation and a slowing economy.
The Fed also raised its 2025 inflation forecast while downgrading its economic growth outlook. Read more
Trump Administration stops program that preserves affordable housing units
Building Design+Construction, March 19, 2025
The Trump Administration halted a program that pays for repairs that preserve affordable housing units, according to ABC news.
The projects keep tens of thousands of units livable for low-income Americans, the ABC report says. The program has already awarded the money to projects for least 25,000 affordable units across the country. Details of how the program will be shut down are unclear. The program is being “terminated” at the direction of DOGE. Read more
Builders, owners continue to prioritize sustainability despite federal changes
Building Design+Construction, March 19, 2025
Since taking office, President Donald Trump has signed a series of executive orders to de-prioritize clean energy and sustainability projects that receive federal funds and made policy changes that de-emphasize sustainability.
Despite these actions, most construction industry clients haven’t changed their priorities when it comes to building greener and more resilient buildings. A Skanska executive quoted in a Construction Dive article says clients with sustainability commitments in their portfolios are sticking to pledges they have made to stakeholders and investors. Read more
ABC lauds Trump for rescinding Biden policies on mandated labor and apprenticeships
Associated Builders and Contractors, March 17, 2025
Associated Builders and Contractors today issued a statement applauding President Trump’s recent executive order rescinding what ABC called “harmful” Biden administration executive actions that increased costs, restricted competition, exacerbated construction’s labor shortage and delayed taxpayer-funded construction of critical infrastructure, manufacturing and clean energy projects.
ABC had testified previously to Congress that, when mandated by government, Project Labor Agreements (PLAs) can add 12-20% to construction costs, and reduce competition.
ABC was also pleased with President Trump’s elimination of Biden executive orders pushing government-registered apprenticeships on federal and federally assisted construction projects and the revocation of an EO related to minimum wages for employees working on federal contracts.
In total Trump’s March 14 executive order revoked 19 Biden EOs that ABC opposed.
Tens of thousands of fired federal workers must be rehired, says U.S. District judge
Politico, March 13, 2025
Judge William Alsup in San Francisco called President Trump’s attempts to shrink the federal bureaucracy via mass firings “a sham.” He ordered the Defense, Treasury, Energy, Interior, Agriculture and Veterans Affairs departments to “immediately” offer all fired probationary employees their jobs back. The Office of Personnel Management, the judge said, had made an “unlawful” decision to terminate them. Read more
Trump orders intended to boost production of domestic lumber
Building Design+Construction, March 13, 2025
President Donald Trump recently issued new executive orders to increase production of domestic lumber.
One order directs the Secretaries of the Interior and Agriculture to issue new guidance for increased timber production on federal land administered by the Bureau of Land Management and the National Forest system. Currently, timber harvesting on federal land requires thorough environmental assessments that could be reduced or eliminated under Trump’s directive. The action drew sharp criticism from environmental organizations. Read more
ABC lauds Trump Admin’s plan to clarify Waters of the United States rule
Associated Builders and Contractors, March 12, 2025
Ben Brubeck, VP of Regulatory, Labor and State Affairs for the Associated Builders and Contractors (ABC), in a statement thanked President Trump and EPA administrator Lee Zeldin for the announcement that the agency would revise its definition of “waters of the United States.”
Brubeck said that uncertainties surrounding the Clean Water Act have been an impediment to development. “By ensuring full implementation of the U.S. Supreme Court’s ruling in Sackett v. Environmental Protection Agency, the EPA and [U.S. Army Corps of Engineers] can enact unambiguous boundaries on the scope of the federal government’s authority to maintain key water quality protections. Doing so will enable developers and contractors to efficiently comply with these important environmental regulations while avoiding unnecessary delays to critical infrastructure projects.”
Read the EPA’s announcement here.
In other related news, this afternoon the New York Times and other news sources reported that the EPA planned to close all 10 of its environmental justice offices responsible for addressing the disproportionately high levels of pollution in marginalized communities. An EPA spokesperson said these moves align with Trump's orders to end “wasteful” spending and DEI programs.
Tariff tizzy: U.S. and Canada walk back latest volleys
Reuters, March 12, 2025
The Trump Administration’s 25% tariff on steel and aluminum imports took effect this morning. But after the American stock exchanges plummeted over the past two days, Trump temporarily lifted the extra 25% tariff on imports from Canada it imposed only a day before. Canada’s Ontario province in turn suspended its 25% electricity surcharge that would have hit 1.5 million American homes and businesses in three states.
These tariff skirmishes haven’t ended, however. The European Union vowed it would respond to Trump’s threat of reciprocal tariffs with surcharges on $28 billion in U.S. exports. Read more
Trump Admin doubles tariffs on steel and aluminum products from Canada
New York Times, March 11, 2025
President Trump said this morning that he would add another 25% tariff, in response to surcharges being imposed by Ontario on electricity supplied to some U.S. states.Trump also reiterated that Canada should become part of the United States. Read more
Five Steel Groups Pledge Support for Steel Tariffs, Applaud Actions
American Institute of Steel Construction, March 10, 2025
In Washington, D.C., five organizations representing the American steel industry today wrote to President Trump to express strong support for restoring 25% tariffs on steel imports and eliminating the exclusion process for that tariff program.
The American Iron and Steel Institute (AISI), Steel Manufacturers Association (SMA), Specialty Steel Industry of North America (SSINA), American Institute of Steel Construction (AISC) and U.S. OCTG Manufacturers Association (USOMA) today sent a joint letter to the president reiterating the steel industry’s support for steel tariffs under Section 232 of the Trade Expansion Act of 1962 and for “the elimination of the steel Section 232 exclusion process that has been exploited as a loophole by foreign producers seeking to avoid tariffs.” Read more
Ontario imposes an additional 25% tariff on electricity exports to U.S.
Associated Press via NBC News, March 10, 2025
Canada's most populous province will charge that much more for electricity to 1.5 million businesses and homes in Minnesota, New York, and Michigan. The tariff will remain in place despite a one-month reprieve on U.S. tariffs on Canadian goods. Read more
Trump doesn’t rule out recession or higher inflation
Financial Times, March 9, 2025
During an interview on Fox News on Sunday, President Trump declined to rule out a recession hitting the U.S. economy this year. During that interview, he also dismissed concerns among business leaders about his administration’s tariff strategies.
The Atlanta Fed has warned of an economic retraction in the first quarter of the year. And when asked whether tariffs might fuel inflation, Trump responded “You may get it.” He added that interest rates are down. Read more (subscription required).
U.S. employment continued to rise in February
CNN, March 7, 2025
The Bureau of Labor Statistics stated that the country added 151,000 new jobs in February, up from an adjusted 125,000-job gain in January. February’s unemployment rate was 4.1%, up marginally from 4% in January. Read more.
Trump threatens Russia with sanctions and tariffs
The Guardian, March 7, 2025
President Trump stated on Truth Social that he would consider “large scale” banking sanctions and tariffs if Russia didn’t agree to a cease fire and peace agreement with Ukraine. Read more.
Hewlett Packard Enterprise lays off 2,500 to cushion impact of tariffs on economy
Wall Street Journal, March 7
Tech giant Hewlett Packard Enterprise said it would cut about 2,500 jobs, or 5% of its global workforce, in a cost-reduction program that came as the company said it expects its fiscal 2025 profit to be dragged down in part by tariffs. Read more (subscription required).
Businesses baffled by Trump’s erratic trade policies
Associated Press, March 6
The Associated Press quoted business leaders who feared that Trump’s on-again off-again tariff’s strategies are making it harder for them to plan ahead and make decisions about pricing, plant construction, new-product rolllouts, and even determining whether past trade agreements with other countries are still valid. Read more.
Trump pauses tariffs on imports from Mexico and Canada
Supply Chain Dive, March 6
After speaking with Mexico President Claudia Sheinbaum Thursday, Pres. Trump said he would pause tariffs on imports compliant with the United States-Mexico-Canada Trade Agreement until April 2, when the Commerce Department is scheduled to submit a new report on this matter.
Commerce Secretary Howard Lutnick told CNBC that similar treatment could be coming for goods imported from Canada under the USMCA. A couple hours later, Trump paused tariffs on all USMCA imports until April 2. Read more.
Tariff panic causes steel prices to spike
Associated General Contractors of America, February 24-28, 2025
In his weekly Data Digest, Associated General Contractors of America’s economist Ken Simonson noted that steel prices were rising sharply. He cited one reader who sent the following list of increases announced in January and February: tube up $350 per ton (4 increases); plate, $200 (2); rebar, $70 (2); merchants, $60.
Investment analyst Timna Tanners of Wolfe Research wrote that “mills have been reluctant so far to ramp up capacity, instead hiking prices 30% from lows before tariffs were announced.” In a separate note to investors regarding President Trump's announced restored 25% tariffs on all steel imports, Tanners wrote, “panic buying ahead of the March 12 effective date has helped boost [hot rolled coil to around $840 per short ton (st), per price reporting firm CRU], up from January lows at $680/st, with some mills already at $900/st. Read more.
Gilbane offers a positive take on market conditions in early 2025
Gilbane Building Company, February 12, 2025
In its first quarter 2025 Market Conditions report, Gilbane states that, despite a slight uptick in inflation, the U.S. economy remains healthy due to continued spending growth.
Key takeaways from the report:
- Total engineering and construction spending for the U.S. ended 2024 up 6.5 percent, just above 2023 growth of 6%.
- High-performing segments in 2024 point to strong investment growth across manufacturing, public safety and water supply, each with anticipated year-end growth of more than 15% above 2023 levels.
- Contractors may face price uncertainties in the coming months due to surcharges, tariff costs, increased production costs, and product substitutions.
ABC: Construction materials prices up 1.4% in January, and 40.5% since February 2020
Associated Builders and Contractors, February 13, 2025
Construction input prices increased 1.4% in January compared to the previous month, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics’ Producer Price Index data released today. Nonresidential construction input prices increased 0.9% for the month.
Overall construction input prices are 1.3% higher than a year ago, while nonresidential construction input prices are 0.7% higher. Prices increased in all three energy subcategories last month. Crude petroleum prices increased 14.8%, while natural gas and unprocessed energy material prices increased 13.7% and 13.0%, respectively
“Materials prices increased at the fastest monthly pace in two years in January,” said ABC Chief Economist Anirban Basu. “This rapid escalation is largely due to three factors. First, energy prices rose sharply. Second, producers often raise their prices at the start of the year. And third, many purchasers rushed to buy inputs before potential tariffs could go into effect, and that surge in demand pushed prices higher.”
“Of these three factors, tariffs are the only one that could continue to push input prices higher in the coming months,” said Basu. “Import taxes allow domestic producers to raise their prices, and the new 25% levies on steel and aluminum will result in just that if they remain in place. A strong majority of contractors expect their sales to increase over the next six months, according to ABC’s Construction Confidence Index, and the combination of increased demand for construction inputs and ongoing supply chain confusion suggests input price escalation could accelerate through the first half of 2025.” Read more.
Developers fear building material inflation from tariffs
Globest.com, February 12, 2025
Proposed tariffs on building construction materials by President Trump could raise costs for developers by as much as 10%.
Projects that use a lot of steel such as high-rise apartment buildings, condo buildings, office buildings, and big government projects would be hit hardest. Trump has proposed 25% tariffs on construction materials including steel, aluminum, and lumber.
Smaller projects might be able to save money by using alternative materials. For example, shipping containers, which can be transformed into commercial properties and affordable housing, may be an attractive substitute for certain projects.
The tariff proposals were offered just as material costs seemed to be headed for stabilization. In the long run, there is a chance that the tariffs can help U.S. steelmakers be more competitive, leading to a steadying of prices. Read more.
FEMA won’t enforce laws protecting public buildings in flood zones
New York Times, February 14, 2025
The Federal Emergency Management Agency has reportedly decided to cease enforcing rules designed to prevent flood damage to schools, libraries, fire stations, and other public buildings.
The policy has not been publicly announced, according to a report in the New York Times. FEMA’s stance could endanger public safety and may be in violation of federal law, according to experts cited in the report. The Federal Flood Risk Management Standard says that when public buildings in a flood zone are damaged or destroyed, they must be rebuilt to prevent future flood damage in order to qualify for FEMA funding.
Under the rule, rebuilt structures could be required to be elevated above the expected height of a future flood or be relocated to a safer location. FEMA said that the flood rule is under review after President Donald Trump issued an executive order revoking an executive order calling for a federal flood standard issued by President Joe Biden.
The executive director of the Association of State Floodplain Managers said failing to enforce the rule would make people less safe and lead to waste of taxpayer dollars, the Times’ report said. Read more.
Trump considers putting federally owned office buildings on the block
Building Design+Construction, February 4, 2025
The Trump administration wants to sell two=thirds of the government’s office inventory to the private sector.
The General Services Administration manages 370 million sf of federal buildings nationwide. If the Administration follows through, GSA may cancel 70 million sf of leases in Washington D.C. alone. Read more
Trump rules about federal building designs roil AIA
Building Design+Construction, February 3, 2025
The American Institute of Architects took exception to executive orders signed by President Trump that will impact the designs of federal buildings.
Trump favors neoclassical design, and is said to want that preference to abide for procuring designs. AIA objected to mandates that would stifle innovation. Read more