Accounting for Tariffs in Construction Contracts

President Donald Trump has implemented his “America First” trade policy throughout 2025 by implementing a sweeping set of tariffs aimed at reducing U.S. reliance on foreign goods. The tariffs, which have fluctuated since January, have included threats of a 145% tariff on goods imported from China, a 50% tariff on steel and aluminum, and a 10% universal import tariff on all goods entering the U.S.

With the proposed tariffs constantly fluctuating, the impact has quickly rippled through the construction industry, where cost certainty and supply chain reliability are essential. As contractors scramble to mitigate exposure to escalating material costs and procurement delays, contractors, owners, and construction professionals alike must revisit how tariffs are addressed, or not addressed, in their contracts.

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