On April 2, 2025, President Donald Trump made headlines yet again—this time with a sweeping announcement that has left the construction industry bracing for impact. In a bold move to reshape America’s trade relationships, the administration revealed a new 10% across-the-board tariff on all imported goods, along with steep additional tariffs targeting over 180 countries.
Set to go into effect this month, the tariffs are being framed as a way to revive domestic manufacturing and protect American jobs. But for contractors, developers, and suppliers across the country, especially in the construction industry, the consequences could be disruptive—if not outright costly.
So, what do these tariffs really mean for your business? And what can contractors do to protect themselves in this new economic landscape? Let’s dig in.
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The True Cost of Tariffs for Construction
The construction industry is deeply reliant on imported materials. Whether it’s steel from China, aluminum from Canada, tiles from Italy, or copper wiring from Chile, these goods play a crucial role in nearly every project—large or small.
Under Trump’s new tariff regime, all of these products—and countless others—are about to become more expensive. The 10% flat tariff is just the beginning. Countries deemed to have “unfair trade practices,” or those with which the U.S. has significant trade deficits, are being hit with tariffs as high as 25% or more. That includes major trade partners like China, Germany, Mexico, and Brazil.
For the construction industry, that means:
• Material cost spikes across steel, aluminum, insulation, lumber, tiles, fixtures, and more.
• Project delays due to supply chain disruptions and sourcing challenges.
• Margin pressure as costs rise faster than bids can be adjusted.
• Tighter competition, especially for small to mid-sized contractors without purchasing leverage.
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Contractors Already Feeling the Squeeze
Contractors across the Tri-State area and beyond are already seeing price increases from suppliers trying to get ahead of the changes. Some have had to pause quoting new jobs or revise existing bids. Others are scrambling to find domestic alternatives, which are either more expensive or have long lead times.
And that’s just the beginning. As tariffs ripple through supply chains, even equipment manufacturers are warning of upcoming price hikes on tools, vehicles, and machinery.
If you’re in construction, you know this isn’t a short-term issue—it’s a full-scale challenge that could affect your business for years.
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Workers’ Compensation Insurance
Is Your Workers’ Comp Plan Costing You Too Much? Let BGES Group Help.
At BGES Group, we specialize in workers’ compensation programs built specifically for contractors. Whether you’re a general contractor, electrician, roofer, or other trade professional, we can help you save money, improve coverage, and streamline your insurance needs.
We serve the Tri-State area (NY, NJ, CT) and work with an associate who covers the entire country, so no matter where your job sites are, we’ve got your back.
If you’re unhappy with your current plan, it’s time to try one of ours.
Call Gary Wallach today at 914-806-5853 or email bgesgroup@gmail.com. Let’s build a better future together.
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What Contractors Can Do to Protect Themselves
The tariffs are here—and they may not be going away anytime soon. So how can contractors navigate this new economic terrain without losing ground?
1. Reevaluate Your Supply Chain
Now is the time to identify which of your materials are imported and determine where alternative, domestic options may exist. Even if U.S. suppliers are more expensive, they may become more reliable as tariffs on foreign goods rise.
2. Renegotiate Supplier Agreements
Talk to your vendors. Ask about price-locking, alternative sourcing, and timelines. Consider building stronger relationships with local or regional suppliers who might offer better stability than global providers.
3. Include Escalation Clauses in Contracts
If you’re not already using them, cost escalation clauses can help protect you from material price increases after a contract is signed. It’s a safeguard that could save you thousands per project.
4. Adjust Your Bidding Strategy
With costs going up, make sure your bids reflect the new economic reality. It’s better to lose a job due to price than to win a job that puts you in the red.
5. Review Your Insurance and Overhead Costs
With profit margins under pressure, every dollar counts. If your workers’ compensation plan is overpriced or not meeting your needs, that’s money you could be using to manage tariff-related increases. (That’s where BGES Group comes in!)
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Looking Ahead: Will This Get Better or Worse?
Some analysts believe that the tariffs may be used as a bargaining chip for future trade deals, meaning they might not stay in place forever. However, given the administration’s commitment to “America First” policies, contractors should prepare for these tariffs to be the new normal—at least for the foreseeable future.
There’s also the risk of international retaliation. Other countries may impose their own tariffs on American goods, which could ripple back to the construction industry in the form of restricted access to key foreign products, more shipping delays, and global price instability.
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Final Thoughts
Trump’s April 2025 tariff announcement has set the stage for a new era in American construction. While the long-term goal may be to boost domestic manufacturing, the short-term reality is rising costs, disrupted projects, and difficult decisions for contractors nationwide.
This is a moment where strategy, preparation, and smart partnerships matter more than ever. Now is the time to tighten your operations, adjust your approach, and align with professionals who can help you stay ahead—no matter what comes next.
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About BGES Group
BGES Group is one of the Tri-State area’s leading providers of workers’ compensation insurance for contractors. We understand the challenges the construction industry is facing right now—from rising costs to labor issues—and we’re here to help you save money, stay protected, and keep your projects moving forward.
If you’re not satisfied with your current workers’ comp provider, we invite you to try one of our specialized programs. We work with contractors across New York, New Jersey, and Connecticut, and thanks to our trusted associate, we can help you no matter where in the U.S. you operate.
Contact Gary Wallach today:
• Phone: 914-806-5853
• Email: bgesgroup@gmail.com
• Website: www.bgesgroup.com
The world is changing fast—but with BGES Group on your team, you don’t have to navigate it alone. Let’s build something stronger—together.