How New Tariffs Are Driving Up Construction Costs

The construction industry is feeling the effects of new international tariffs, with suppliers and subcontractors reporting immediate price increases across a number of trades. These changes are not just theoretical; they’re already impacting material costs and project budgets.

Here’s a quick breakdown of the most affected areas:

• Framing: Steel studs, particularly those manufactured in Canada, are becoming more expensive due to cross-border tariffs.

• Ironwork: General steel prices are rising, largely influenced by increased costs from Canadian sources.

• HVAC: Much of the A/C equipment used in our projects is made in Mexico and now comes with a higher price tag.

• Glass & Aluminum: Canadian aluminum is another material affected by new tariffs, impacting the cost of glass and metal components.

• Electrical: Lighting components and light switches made from globally sourced parts—especially from China—are seeing increases, as is electrical gear produced in Mexico.

Price fluctuations can potentially cause project delays or necessitate budget adjustments if not addressed proactively. At Caliber Construction, we are closely monitoring the situation and collaborating with our partners to find cost-effective solutions that keep your projects on track.

If you're planning a construction project in the near future, now is an excellent time to discuss how these market changes might affect your plans. Our team is here to help you navigate these challenges with the insight and experience of a trusted tenant improvement construction firm in Orange County.