What the Court’s Decision on Trump-Era Tariffs Means for the Construction Industry
On May 28, 2025, the U.S. Court of International Trade issued a pivotal ruling that invalidated most of former President Trump’s broad “Liberation Day” tariffs. These tariffs, introduced in April 2025, imposed baseline duties of 10% or more on a wide range of imports. The court found that the executive branch overstepped its authority under the International Emergency Economic Powers Act (IEEPA), leading to an immediate suspension of the tariffs.
So, what does this mean for the U.S. construction industry?
A Break on Material Costs
Construction companies will likely see cost relief on a wide array of imported materials. Many of these products—from aluminum window frames to ceramic tiles and steel fasteners—are now exempt from the tariffs that had inflated their landed prices. With duty rates slashed by up to 20% in some cases, procurement budgets may stretch further, especially on large-scale projects.
Renewed Global Sourcing Flexibility
By removing these trade barriers, the ruling reopens the door for international suppliers who had been priced out of the U.S. market. Construction firms now have broader access to competitively priced goods from key exporters such as China, South Korea, Italy, and Vietnam. This can be especially valuable in an industry still grappling with supply chain unpredictability and material shortages.
More Competitive Bidding Environment
Lower material costs could lead to more aggressive project bids and tighter margins. Developers may benefit from downward pricing pressure as contractors factor reduced input costs into their proposals. While this is good news for project owners, domestic manufacturers could face renewed pricing competition from abroad.
A Word of Caution
Not all tariffs are gone. Duties on critical items like structural steel and aluminum under Section 232 remain in place, and the Trump administration has already filed an appeal. This means the situation is still in flux, and businesses should keep an eye on any reinstatements or legal reversals that might follow.
Far Point Global's Advisory
At Far Point Global, we welcome this development, but we remain cautiously optimistic. We strongly recommend that all clients continue budgeting for a portion of the higher tariff costs as a contingency measure. This reserve can provide a financial buffer in the event the tariffs are reinstated during the appeal process or modified by subsequent legal or executive action.
To all our ongoing clients: please feel free to reach out if you have any questions regarding your pending orders or need support with updated landed cost projections. While this ruling is a step forward, we anticipate choppy waters ahead as these policies continue to evolve through the courts.