�鶹���

The latest wave of tariffs is sending ripples of uncertainty through the construction industry, and sheet metal and HVAC contractors are bracing for significant cost increases. 

Stan Kolbe, �鶹���’s Executive Director of Government and Political Affairs, highlights the growing economic and procurement challenges contractors now face.

Kolbe warns that while the potential tax benefits Congress discussed could help stabilize costs, they are still months or even years away from taking effect. 

“Congress has made it clear that they do not want to be in a situation where the U.S. and other nations are raising tariffs and fees on consumers while tax cuts remain undecided,” he says.

Contractors are particularly vulnerable to the fallout from international trade disputes, and Kolbe emphasizes that the disruptions could threaten both positive trading relationships and the overall stability of the construction market. The U.S.-Mexico-Canada Free Trade Agreement (USMCA), once expected to provide long-term tariff-free stability, is now subject to record-level tariffs.

“While these tariffs are being framed as part of a border security initiative, their ultimate goal is to raise revenue to offset portions of the $5-trillion tax cut included in the reconciliation package,” Kolbe notes.

With tariffs already increasing the cost of essential construction materials like steel and aluminum, Kolbe urges contractors to review and revise their contracts carefully.

“Hopefully, �鶹��� contractors will quickly assess any contractual provisions related to tariffs, changes in laws and force majeure clauses,” Kolbe advises. “They should determine if they can pass along higher costs upstream and consider including price escalation clauses in both private and public contracts to seek reimbursement for unpredicted cost spikes.”

Beyond revising contracts, �鶹��� contractors should consider the following strategies:

Kolbe points out that ongoing debates in Washington over government funding, debt limits and reconciliation packages add further layers of economic unpredictability. “This trade war was unfortunately timed, adding uncertainty to investment decisions and construction markets,” he says. “Economists widely agree that tariffs create pricing instability, which could slow down an already cooling market.”

With the Trump administration and the Commerce Department considering further tariff measures, �鶹��� remains committed to keeping its members informed. The association is monitoring developments closely and will provide timely updates on how new trade policies impact sheet metal and HVAC contractors.