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Industry News••12 min read

What Does Trumps 2025 Tariff Plan Mean for Contractors?

Tariffs on imported construction materials will increase costs by 10-25% on key items like steel, lumber, and copper. Contractors need immediate strategies to adjust bids, protect margins, and track material costs.

Cory Salisbury
Cory Salisbury
Founder & Fractional CFO • Salisbury Bookkeeping

What Does Trumps 2025 Tariff Plan Mean for Contractors?

Tariff plans rolling out through 2025-2026 will make lumber, steel, copper, drywall, and other supplies 10-25% more expensive.

Materials Most Affected

  • Steel and aluminum: 20-25% tariffs
  • Lumber: 10-15% increases (Canadian softwood)
  • Drywall and gypsum: 8-12% price bumps
  • Copper and electrical components: 10-18% increases
  • Appliances and fixtures: 5-15% depending on origin

Protecting Bids From Price Increases

  1. Add material escalation clauses
  2. Shorten price locks with suppliers
  3. Add tariff buffers to bids (8-12%)
  4. Buy materials early if contracted

Handling Existing Fixed-Price Contracts

  • Accept the loss and learn
  • Renegotiate with documentation
  • Value-engineer the project

Tracking Material Costs

  1. Set up job costing in QuickBooks
  2. Compare estimated vs. actual every two weeks
  3. Track price changes by category monthly
  4. Build 10% buffers into every estimate

Immediate Action Plan

Monday: Call suppliers. Tuesday: Review pipeline. Wednesday: Set up job costing. Thursday: Run three-month cost report. Friday: Brief your team.

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