News & Publications

Tariffs, Trade Policy & Construction: What New York Area Firms Should Know

04/30/2025

With recent changes to federal trade policy and renewed tariff enforcement making headlines, many construction company owners are asking what this could mean for their projects, budgets, and supply chains. The truth? No one can say for certain how the coming months will unfold, but there are steps you can take now to stay ready and resilient.

What’s Happening Now

In early 2025, the federal government reimposed and expanded tariffs on imported steel and aluminum, applying a new duty on all such imports regardless of origin. These materials are the backbone of many construction projects – particularly in infrastructure, commercial development, and public works – so price increases or delays in availability can quickly ripple through project timelines and profit margins.

There’s also talk of broader trade changes. Recent announcements have introduced new tariffs on a wide range of imports, and while the full impact on the construction sector is still developing, experts expect supply chains to tighten and prices to rise across multiple categories.

These policies are being positioned as efforts to strengthen domestic manufacturing and reduce dependence on foreign goods. But for now, they’re also contributing to material price uncertainty and planning challenges for construction firms of all sizes.

What to Watch For

Here’s where construction companies in the Greater New York area may feel the effects:

Rising costs for raw materials: including steel, aluminum, copper, and imported lumber
Increased lead times for machinery and parts: especially for equipment with foreign-made components
Fluctuations in fuel and energy costs: as global trade and transport dynamics shift
Strain on vendor relationships: if suppliers are forced to raise prices or adjust availability

It’s also worth noting that as of now, New York and neighboring states haven’t announced any state-level tariff-related tax changes or procurement delays. But that could change, so staying alert to both federal and state developments remains critical.

What Construction Firms Can Do Now

Even in the face of uncertainty, proactive steps can help protect your margins and keep projects on track:

Review Material Costs and Vendor Contracts Talk to your suppliers now. Ask about potential price changes, alternative sourcing options, and how they’re responding to tariff-related impacts. Lock in pricing where possible.
Build Flexibility Into Your Bids and Budgets Incorporate allowances for price fluctuations into project proposals and internal financial plans. Work with your accounting team to model different cost scenarios and timelines.
Evaluate Equipment Plans If you’re considering new machinery or vehicle purchases, revisit the timeline. Tariffs could impact pricing or delivery, so aligning financing and timing may save you money and frustration down the line.
Improve Inventory Visibility Make sure you’re not tying up too much cash in overstocked materials, but also not running so lean that a delayed shipment puts a job at risk. Real-time inventory and cost tracking is key here.
Focus on Cash Flow Forecasting With material and labor costs in flux, updated cash flow planning will be essential. Work with us to create flexible forecasts that account for changing inputs without derailing operations.

You’re Not in This Alone

Tariff shifts can feel frustrating, especially when they’re unpredictable and out of your control. But construction firms have always been resilient. With the right financial systems in place and a strong handle on costs, you can get through this moment and come out stronger on the other side.

If you have questions about how these trade developments may affect your business, or need support adjusting your forecasting, pricing strategy, or vendor contracts, we’re here to help. Our team specializes in providing the practical financial guidance you need to grow confidently, even in uncertain times.