PORTLAND, MAINE – Construction companies across Maine are preparing for higher costs as new tariffs take effect, adding financial strain to an industry already grappling with rising material prices. Builders say that despite tariffs being imposed on China, Europe, Canada, and Mexico, the real cost will fall on American consumers and businesses.

Tariffs and Their Impact on Construction Costs

From lumber and drywall to electrical components and heating systems, nearly every aspect of home construction in Maine relies on imported materials. Many of these materials come from China, Canada, and Europe, meaning tariffs will significantly drive up costs for builders and homebuyers alike.

Governor Janet Mills has been vocal about the impact these tariffs will have on Mainers, calling them an unnecessary burden on consumers.

"Let's call it what it is. A tax. A massive tax increase on United States citizens and businesses,” Gov. Mills said.

Steel and Aluminum Tariffs Already Raising Costs

Tariffs on steel and aluminum have already increased construction costs by an estimated 10%, according to state officials. Gov. Mills says that while prices for basic necessities like food, housing, and fuel continue to rise, there has been no clear economic plan from Washington to offset the financial burden.

"Where is the plan to reduce the price of bread and milk and heating oil and housing and automobiles? The basic things that consumers need and want. I've not seen a plan from this administration to turn the economy around,” she said.

The Cost of Building a Home is Rising

Local builders warn that tariffs on key materials such as lumber, insulation, drywall, electrical and plumbing components, and HVAC systems will make it even harder to build affordable housing in Maine.

David Patterson, owner of Canbury Homes, says that these price hikes could force buyers to scale back their plans or delay building altogether.

“It's going to just drive-up costs in terms of getting affordable housing and what we're doing,” Patterson said.

Even small increases in material costs can add up quickly. Carl Chretien, with Chretien Construction, estimates that tariffs could cause home prices to rise by up to 40% in some cases.

"It's a little bit here. A little bit there. You start adding them all up, you could get to an extra 40% increase. So that means the home that you wanted, if you wanted that nice cabinet or nice trim, you're stuck with getting nothing,” Chretien explained.

Builders Rushing to Lock in Lower Prices

To avoid sudden price hikes, many Maine builders are placing bulk orders before new tariffs take effect.

Patterson says his company has already seen plumbing parts increase by 35%, forcing him to act fast.

"So, we've got probably three or four orders we got in before the price increase, with people that are rushing to contracts,” he said.

Trump’s Justification for Tariffs

President Donald Trump has defended the tariffs as a way to raise federal revenues, bring manufacturing jobs back to the U.S., and create a fairer trade relationship with China, Europe, and Canada.

“You know, he's certainly bringing a lot of people to the table,” Patterson said. “We would hope that the playing field is evened out."

Concerns for the Future

Builders worry that if tariffs continue to rise, more homeowners will delay remodeling projects and potential homebuyers will be priced out of the market.

"It's going to price people out of the market, when we're already priced out of the market,” Patterson warned.

As the situation unfolds, Maine’s construction industry faces uncertainty, with builders, homeowners, and local officials waiting to see whether these tariff-driven price hikes will have long-term effects on housing affordability and economic growth in the state.

Originally reported by Brad Rogers in WGME.