The Construction Counselor

On April 8, 2025, in response to China’s 34% retaliatory tariff announced on April 4, President Trump increased the reciprocal tariff on Chinese imports from 34% to 84%, effective 12:01 a.m. on April 9, 2025, and, at the same time, increased the ad valorem rate of duty for de minimis value shipments from 30% to 90% (along with related per postal item fees). As with the prior tariffs, these changes could lead to higher costs for building materials, supply chain disruptions and challenges in budgeting and project timelines for those in the construction and real estate development industries. In a new U.S. Tariff Update, attorneys Robert M. Oberlies, Michael Meagher and Jackson Guo provide the latest update regarding tariffs.

Key Implications for Construction & Real Estate:

Increased material costs:

Common construction inputs such as steel, aluminum, and fixtures may see price hikes.

Supply chain delays:

Higher tariffs could disrupt shipments of imported components used in residential and commercial builds.

Budgeting and bidding challenges:

Tariff volatility complicates long-term planning for developers and general contractors.

Impact on real estate owners:

Landlords planning capital improvements may face unexpected project cost increases.

Contract risk management:

Developers and property owners should review contract language for escalation clauses and tariff pass-throughs.

For more information, read the full legal update.