In February, President Trump imposed a 10% tariff on all Chinese goods, leading to immediate price increases for construction materials, particularly affecting the construction industry. New Empire's CEO, Bentley Zhao, reported that his projects could face a substantial additional cost due to the sudden rise. Many builders are starting to feel the pressure of rising costs, with suppliers hesitating to provide long-term bids, causing uncertainty in project planning. The potential of larger tariffs loom, raising concerns about the industry’s future.
It's too fast. There's no time. Chinese materials account for about a quarter of the $15 million materials budget for a 19-story condo.
Some builders and developers... have received contracts with escalation clauses to account for increased costs; waited as their suppliers delay updated price sheets for imported goods.
#trade-tariffs #construction-industry #us-china-trade-relations #impact-on-builders #economic-uncertainty
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