Highway, Street & Bridge Construction NAICS 237310

May 9, 2025 - Trump Administration Doubles Steel, Aluminum Tariffs

• Higher steel and aluminum tariffs could increase highway, street, and bridge construction project costs. On June 4, the Trump administration doubled the tariffs on all US steel and aluminum imports to 50%, according to Reuters. The administration claims the higher duties will protect the US steel and aluminum industries. Imported steel and aluminum are key inputs for building bridges, guardrails, and structural components for roadbuilding. If materials prices increase, projects would be more costly to complete. State, local, and federal road and bridge projects are often awarded on a fixed-cost basis. If projects become unprofitable because input costs increase, some projects could be cancelled or postponed. Industry observers suggest that demand for domestic steel is likely to rise, but if US producers struggle to ramp up, there could be shortages and price increases. The new tariffs do not include the UK, which negotiated a temporary trade agreement with the US.
• About 60% of contractors said they have experienced at least one vehicle crash in a roadway work zone in the last year, according to a recent survey by the Associated General Contractors of America and reporting by Construction Dive. About 30% of respondents reported five or more vehicle accidents in the last year. However, contractor experience suggests that drivers are more likely to be injured or killed in jobsite crashes than construction workers. About 30% of contractors reported a worker injury over the last year, while 71% reported a driver or passenger was hurt. At 80%, increased police presence topped the list of contractor suggestions for better work zone safety, followed by stricter enforcement of work zone traffic rules (70%), and tougher cell phone usage laws (66%).

• In June, the Federal Highway Administration (FHWA) amended two bridge grant funding notices to remove Biden-era requirements that are inconsistent with the Trump administration’s priorities, according to Engineering News-Record. The amendments addressed Biden administration requirements related to environmental justice; climate change; diversity, equity, and inclusion (DEI); and workforce development. The changes affect the nearly $4.9 billion in grants for the Large Bridge Grants program and $500 million for the Competitive Highway Bridge Program, which primarily serves rural bridge repair or replacement projects. Additionally, the Department of Transportation recently announced about $1.5 billion in emergency funding for bridge and road repairs, including $683 million to repair damage caused in Florida, Georgia, North Carolina, South Carolina, and Tennessee by Hurricane Helene in 2024.
• North American construction and engineering spending on highways, streets, and bridges in 2025 is expected to grow by 3% and post stable annual growth through 2029, according to FMI’s second-quarter 2025 North American Engineering and Construction Outlook. While funding authorized under the Infrastructure Investment and Jobs Act (IIJA) is set to expire after fiscal 2026, FMI suggests that unspent IIJA funding unrelated to infrastructure could be reallocated to pay for highway, street, and bridge projects. Construction and engineering spending for highway and street projects is forecast to increase by 2% in 2026, 3% in 2027, and 4% in 2028 and 2029.