The construction materials most at risk for tariffs, per Skanska

Steel and aluminum prices have jumped sharply since the turn of the new year, and more volatility could be on the horizon.

Contractors are bracing for a new wave of tariffs set to take effect April 2, this time on certain material imported from Canada and Mexico — such as steel, aluminum and lumber. Though reports indicate the Trump administration could roll back the ultimate scope of this action, contractors say just the threat of tariffs can have an immediate impact on material costs.

That’s why that looming deadline on Canadian and Mexican imports has already sparked concern across the construction industry, particularly around reinforcing and structural steel, curtainwall systems and Canadian lumber, said Steve Stouthamer, executive vice president of project planning for Skanska USA Building.

Here, Stouthamer talks with Construction Dive about the materials most at risk, tariffs’ impact on budgets and negotiations and steps contractors can take to minimize financial exposure.

This interview has been edited for brevity and clarity.

CONSTRUCTION DIVE: Which construction materials do you expect will see the greatest price volatility due to tariffs?

STEVE STOUTHAMER: The materials being impacted the most are products made from steel and aluminum.

For example, reinforcing steel used in concrete, structural steel used in the building frame, aluminum curtainwall and window wall systems used in the building envelope, piping and ductwork used in mechanical and electrical systems and many building mechanical and electrical equipment components.

Steel prices have increased 15% to 25% since the beginning of January and aluminum is also up 8% to 10% from the beginning of January. The Trump administration has indicated Canadian lumber will be included in the reciprocal tariffs which are set to take effect on April 2. Lumber has already seen a significant increase, 10% to 15% in cost, in anticipation of this