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OPINION
Tariffs, taxes, and turbulence
With informed planning and strategic flexibility, AEC firms can continue to thrive and deliver, even in turbulent times.
T he architecture, engineering, and construction industry has long been vulnerable to global economic forces, but today’s landscape is more volatile than ever. With ongoing shifts in U.S. trade policy, particularly the evolving stance on tariffs, firms across the country are feeling the pressure. While tariffs were once targeted tools of foreign policy, they are now front and center in shaping material costs, project timelines, and business confidence.
Jennifer Nelson, CPA, MBA
Currently, tariffs on imported construction materials such as steel, aluminum, glass, and specialized components are raising costs across the board. For firms that rely on global supply chains or bid on fixed- cost projects months in advance, these unpredictable spikes can wreak havoc on profit margins and project schedules. Since AEC projects are inherently collaborative, these disruptions affect clients, contractors, and consultants alike. THE CHALLENGE OF A CONSTANTLY SHIFTING TRADE ENVIRONMENT. The reality is: trade policy is changing rapidly. Tariffs are being imposed, lifted, and modified in real time based on global politics, supply chain shifts, and domestic manufacturing agendas. Just this year, we’ve seen new duties imposed on products coming from key trade partners, while others are under review or subject to exemptions.
The challenge? This environment is dynamic and changes almost daily. One day it’s tariffs on Chinese steel; the next, it’s new trade friction with the EU or a shift in domestic manufacturing policy. What we know today may be different next week – and that’s the heart of the issue. Tariffs introduce uncertainty – and with it, risk. Federal and state agencies may delay or downsize projects amid concerns about budget overruns or shifting economic priorities. Government-funded projects rely on stable material pricing and predictable economic conditions. Corporate clients might scale back expansion plans, and private developers could become more cautious
See JENNIFER NELSON, page 4
THE ZWEIG LETTER APRIL 21, 2025, ISSUE 1582
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