Specialized Heavy and Civil Engineering Construction NAICS 237990

Jun 6, 2025 - Trump Administration to Double Steel, Aluminum Tariffs

• Higher steel and aluminum tariffs could increase specialized heavy and civil construction project costs. On May 30, the Trump administration announced it would double the tariffs on all US steel and aluminum imports to 50%, according to Reuters. The increase took effect on June 4. The administration claims the higher duties will protect the US steel and aluminum industries. On May 29, the US Court of International Trade (CIT) ruled that the Trump Administration overstepped its authority in levying widespread tariffs and voided most of them, according to the Wall Street Journal. The following day, the US Court of Appeals for the Federal Circuit paused the CIT ruling pending further arguments. The Supreme Court could ultimately decide the case. In the meantime, the tariffs remain in place. Steel and aluminum tariffs were not part of the CIT ruling.
• The total value of construction put in place decreased 0.1% in April compared to March, according to the US Census Bureau. Conservation and development spending dropped 1.4%, and water supply projects saw a 0.1% drop. Spending on sewage and waste disposal increased by 1%. Associated Builders and Contractors (ABC) Chief Economist Anirban Basu said, “Construction spending slipped in April as headwinds like trade policy uncertainty, high interest rates, and tight lending standards continued to batter industrywide momentum. Nearly 22% of contractors reported tariff-related project delays or cancellations in April, and despite changes to certain import tax rates in May, policy uncertainty remains extraordinarily elevated.”

• Spending related to transportation projects - including rail, airports, and ports – is projected to rise 3% in 2025, 3% in 2026, 5% in 2027 and 2028, and 4% in 2029, according to FMI’s second-quarter 2025 North American Engineering and Construction Outlook. The American Society of Civil Engineers estimates transportation infrastructure needs will exceed $1 trillion by 2033. Construction spending for conservation and development projects is expected to drop by 1% in 2025, then rise 1% in 2026 and 5% annually between 2027 and 2029. Investments in dredging and coastal and intercoastal conservation are among the main drivers of conservation and development spending. However, the Trump administration's cuts to the EPA could impact conservation and development projects.
• The state of US infrastructure received a grade of C, according to a recent report card issued by the American Society of Civil Engineers (ASCE) that rates 18 infrastructure categories. The C rating was the highest grade since the ASCE began releasing the reports in 1998. The ASCE cited increased infrastructure spending through the Infrastructure Investment and Jobs Act as the primary driver for the grade improvement. In terms of heavy and civil infrastructure projects, on the high end, ports and rail received a B and a B-, respectively, while stormwater infrastructure got a D. Aviation infrastructure, which includes airports, received a D+. The authors of the ASCE reports urged leaders in Washington DC, “to continue sustained investment in infrastructure and build on progress made to improve infrastructure after decades of deferred funding and under investment.”