The contractors have been preparing a trade war from the election of President Donald Trump in November. Now it has arrived.
On Tuesday, Trump imposed a 25% rate on Mexico merchandise and most of Canada, along with an additional 10% rate on Chinese imports. Those who followed others, the Trump administration quickly deployed after taking office, Starting with 10% Rate to Chinese imports on February 4.
Then, on March 12, the Trump administration intends to promulgate a 25% rate to all imports of steel and aluminum worldwide, adding another layer of cost pressure.
But the construction had already been feeling the wavy effects even before these measures came into force.
Key contribution prices increased in January, as contractors rushed to store with materials before the deadlines. Now that the rates are underway, the pressure changes to the project budgets, the contract negotiations and the general construction activity.
Although some companies have found ways to mitigate risks through certain contract clauses, uncertainty is still high, especially for projects with fixed price contracts.
In addition to the tension, the commercial partners of a long time have responded with their own set of rates. Canada and Mexico moved quickly on Tuesday with retaliation measures, while China imposed additional rates. This decline between nations is feeding concerns about the prolonged interruptions in the supply chain.
Then the immersion of the construction unmolds how these rates have been deployed and what they mean for the construction industry.
