With a wave of international tariffs recently enacted by former President Donald Trump, U.S. businesses — particularly those in construction and manufacturing — are bracing for potential changes in project costs and supply chain stability.

Materials such as steel, aluminum, lumber, concrete, drywall, and electrical components are among the imports likely to face price hikes and delays. The National Law Review recently warned that these pressures could result in budget overruns and project delays, leading to increased use of “tariff adjustment clauses” in construction contracts. These clauses help prepare for cost volatility during long-term projects.

“That’s something the industry is definitely looking at, and we’re exploring those options as much as anyone who works on long-term projects,” said Stephen Hemelt, Director of Communications at H.B. Neild. “In the short term (we won’t see an impact on current projects). Any construction job is built a year or more in advance in terms of materials and supplies. The jobs we have now were already under contract with fixed costs.”

Looking ahead, Hemelt noted that fluctuations in fuel prices could pose additional complications for planning.

“I’d be paying attention to that the most, because there’s no set price on that,” Hemelt said. “You have to have one eye on the future and an eye on current projects. Preparation is the key – you have to prepare for multiple scenarios so you’re doing what’s best for your customers and your employees. Now more than ever, you have to cover your bases.”

This kind of uncertainty isn’t new for the construction sector. According to Taylor Neild, “Ever since COVID, it’s been an unstable market as far as material prices go. Especially for these long term, multi-year projects, you have to anticipate the market as much as you can, which is difficult.”

Larger firms may be better equipped to absorb price shifts and adapt to international policy changes. That seems to be the case for Golden Triangle Polymers, the $8.5 billion integrated facility currently under development in Orange, Texas — a joint venture between Chevron Phillips Chemical Company and QatarEnergy.

“While there is a high degree of uncertainty regarding tariffs, our business is built to withstand market and political cycles,” said Heather Betancourth, Head of Communications for Golden Triangle Polymers. “We remain confident in our investment in Orange County and do not anticipate any effects on our timeline due to tariffs.”

The facility is expected to create 500 full-time jobs and bring an estimated $50 billion in residual economic impact to the region. Although Betancourth couldn’t discuss procurement contract specifics due to confidentiality, she added, “2026 is still when we anticipate to start up the facility.”

As for the broader industry outlook, contractors say it’s too early to predict long-term fallout from the latest tariffs.

“It’s so new we’re not seeing any direct impacts yet, but we’ll have to give it a few weeks and see what happens,” Nield said. “There’s going to be a lot of changes in the global market in the future.”

Originally reported by Kim Brent in Beaumont Enterprise.