Industry experts are affecting the impact after President Donald Trump announced on April 2 a 10% rate in all countries from April 5, with approximately 60 countries, including China and the European Union, subject to higher rates from April 9.
)[Tariffs] Represent multiple threats to construction, which depends more than most sectors of imports for which there is no home replacement, including articles such as the specialized steel pipe specialized in diameter and certain water treatment equipment, ” Says Ken Simonson, an economist in chief of the general associated contractors of America. “The cost of imported materials and internal origin will increase.
Ed Sullivan, an economist in Sullivan’s report, shared a similar feeling, saying that he believes that new rates cause a much more likely recession to a more severe pace. “The announcement yesterday was much wider and severe than it predicted. For construction, the prospects are worse for almost all sectors,” he says. “My knee reaction is that it will lead to a more intense increase in inflation, altering the supply of the product and weakening the economy even more.”
While a fall may cause the federal reserve to resume the decrease in interest rates, Sullivan says: “At first I think that [the Fed] It will place inflation as its highest priority and will slowly react. “”
“The highest construction costs and the smaller demand will mean fewer projects,” says Simonson. “The best hope is that tariff ads will involve concessions and a rapid reduction or elimination of threatened rates.”
