Construction and Mining Equipment Wholesalers NAICS 423810

Mar 14, 2025 - Tariffs on Steel, Aluminum Imports Take Effect

• On March 12, the Trump administration imposed 24% tariffs on all US imports of steel and aluminum, which are expected to increase the costs of many downstream metal products, according to the Associated Press. The new tariffs will affect nearly 290 downstream steel and aluminum products, including parts used in heavy machinery, that are valued at almost $150 billion, according to Reuters analysis of US import data. The Trump administration hopes the tariffs will prompt more reshoring of US metal production and boost US manufacturing jobs. However, some equipment manufacturers suggest that most production of small metal components has moved offshore. For some, paying the tariff may be cheaper than establishing domestic production or locating a US supplier. The head of government relations for the Association of Equipment Manufacturers said any increase in equipment manufacturing costs would likely be passed on to customers.
• In late February, President Trump signed an executive order that aims to boost the US copper industry, according to the Associated Press. The order authorizes an investigation to determine if copper imports pose a national security risk and whether tariffs on copper imports should be imposed. As global electricity demand grows, copper is increasingly important, a key material used in electrical products ranging from rechargeable batteries to electricity transmission lines. The National Mining Association estimates global demand for copper could double by 2030. However, four of the largest planned copper mining projects – all controlled by non-US companies – have faced delays from legal, environmental, and regulatory challenges. Trump’s executive orders aim to increase domestic copper mining and refining by reducing regulatory red tape.

• The value of total US construction spending decreased by 0.2% in January 2025 compared to December, according to the US Census Bureau. Residential spending fell by 0.5%, while nonresidential spending grew by 0.1%. Within the nonresidential building construction subsector, growth in January was led by a 0.7% rise in spending for lodging projects, followed by healthcare (+0.6) and office (+0.4%). Drops in commercial, educational, and multifamily housing spending dragged overall building construction spending in January. Construction spending related to infrastructure was positive in January, led by conservation and development ( up 0.6%), highway and street (+0.6%), sewage and waste disposal (+0.4%), and water supply (+3%). High interest rates continue to weigh on US construction activity, and import tariffs could present additional headwinds, according to Reuters.
• During recent earnings calls, executives at several publicly traded construction companies mostly dismissed potential headwinds and expressed optimism amid steady demand and long-term growth prospects, according to Construction Dive. Executives were largely upbeat despite uncertainties, including potential tariff-related trade strife, shifting regulations, and the fate of federal infrastructure funding. Construction firms Granite and AECOM said federal support for roads, bridges, and water projects would continue even as the political winds in Washington have shifted. Jacobs, Skanska, and Fluor pointed to data center expansion amid robust demand for computing power from rapidly rising AI implementations.