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President Donald Trump signed a series of executive orders Monday on his first day in office, many of them with ramifications for the construction industry.
The actions represent a shift in federal priorities around critical issues such as oil and gas drilling, environmental permitting, tariffs and labor availability.
Trump declared a national energy emergency, which gives it the authority to suspend some environmental regulations and speed permits for oil and gas drilling.
“We’re going to test, baby, we’re going to drill,” Trump said during his speech after taking the oath of office.
His order directs federal agencies to make every available effort to eliminate delays within their respective authorization processes.
“For any project that an agency head deems essential to the nation’s economy or national security, the agencies will use all possible authorities, including emergency authorities, to expedite the award of federal permits “, the order says. “Agencies must work closely with project sponsors to carry out the final construction or development of permitted projects.”
Trump also made moves to limit the adoption of certain types of renewable energy and related products, including wind power and electric vehicles, which could slow the construction of such projects. He ordered agencies to halt the disbursement of Jobs and Infrastructure Investment Act and Inflation Reduction Act funds for electric vehicle charging stations.
Some of the new energy policies will they require action by federal agencies or Congress and others could face legal challenges, according to The New York Times.
Repression of immigration
In a move that could affect the availability of labor for construction projects across the country, Trump declared a national emergency on the southern border designed to crack down on immigration.
The push includes ending birthright citizenship, meaning the federal government will not recognize the birthright of children born to parents without legal status in the country. At least one major demand was presented against on Monday, arguing that birthright citizenship is a constitutional right, according to USA Today.
Trump said his administration also intends to resume construction of a barrier on the US-Mexico border. During his speech after taking the oath of office, he said his original plan for a wall was a non-scalable concrete design.
“I wanted that suction cup to go up 50, 60 feet, a nice Y shape. Beautiful. I love the construction,” he said.
Instead, he said, the sections of wall that have been built use hardened steel, reinforced concrete and anti-climb panels.
“It wasn’t pretty, but it worked,” he said. “Sometimes you sacrifice beauty for efficiency.”
Rates
In a signing ceremony at the White House on Monday evening, the new president said his administration wants to impose 25% tariffs on Mexico and Canada starting February 1.
In addition, an executive action signed Monday directs federal agencies to investigate the causes of U.S. trade deficits with foreign nations. It also aims to create an “External Revenue Service” to collect tariffs, identify unfair trade practices and review existing trade agreements for possible improvements.
For commercial builders and their customers, the tariffs could mean big price increases, experts say they told Construction Dive. A broad application could disrupt construction by raising the costs of materials from specific countries, potentially delaying or postponing projects, Chris Fisher, managing director of Troy, Michigan-based consulting group Ducker Carlisle, said in December.
“What will create challenges for commercial construction is if we see a significant amount of tariffs being announced, followed through and actually implemented,” Fisher said.