After entering effect for about half a day forward April 9President Donald Trump withdrew most of the new rates that his administration announced last week, putting them on a 90-day break. This leaves its current 10% rate rate in effect in early April for most countries, while China will be hit with 125% rates, a higher rate than it was announced last week. He recently reported that US imports would face an 84%rate.
Trump’s announcement had a positive impact on the United States States on April 9, before the actions fell again as trade opened the next day, reflecting on the continued uncertainty and doubt in the wake of the administration’s policies, according to some analysts. Also, Ken Simonson, an economist in chief of the general associated contractors of America, cares about his effect on the construction industry. “A 90 -day pause on the rates is probably not enough to restore the trust of the owners who can advance projects or to help contractors who order materials in a long time,” he says. “In addition, the constant changes in the announced rates add to uncertainty, which is negative to invest.”
Sarah Martin, an associate director of the forecast at Dodge Construction Network, shared a similar feeling. “If some of these rates are paused for ninety days, it could silence or delay some disadvantages, but right now, uncertainty and confusion throughout the market will not be damaged,” says Martin. “If companies cannot plan where the prices will take place next year or where these materials will come from, the risk that the construction activity will be slowed in the short term.”
In addition, the high rate rate of the goods of China will mean challenges. “For more generic articles, such as steel, contractors can change purchases in other countries or in the United States,” says Simonson. “But for articles that incorporate many parts and/or labor, the configuration of the replacement supply chains will require time.”
In some cases, it may not even be an available option. “For lithium, solar panels and other materials for which China has developed more processing capacity, it may not be possible,” he adds.
