Joshua M. Deal | Nossaman
All questions
Year in review
The construction industry in 2025 has been dominated by major infrastructure projects and the effect of the Trump administration’s trade policies.
Since taking office in January 2025, President Trump has undertaken a broad programme of sweeping tariffs on all manner of goods. Most relevant to the construction industry are duties imposed on lumber, wood products, copper products, aluminium and steel. These proclamations have resulted in tariff rates of up to 50 per cent on imported construction materials.1 Moreover, President Trump issued multiple executive orders imposing new tariffs on all product imports from Canada, Mexico and China, as well as global ‘reciprocal’ tariffs on nearly every country for nearly all imports.2 These broader tariffs are subject to litigation over their validity, with lower courts determining that the President exceeded his powers in issuing such tariffs. The US Supreme Court held oral argument in the case on 5 November 2025.3 Based on the Court’s questioning, a majority of the justices seem poised to determine that these tariffs are unlawful.4 However, the Court’s ruling will not affect the tariffs that have been imposed on lumber, wood products, copper products, aluminium and steel.
These tariffs have caused delays and increased costs for construction projects nationwide. Parties have been evaluating how to address these delays and cost increases under their existing and future contracts. Practitioners expect this to precipitate disputes between owners and contractors on projects that have been particularly affected. Moreover, these higher costs have coincided with a lower volume of new private construction deals this year.5
The Infrastructure Investment and Jobs Act of 2021 continued to drive infrastructure projects into 2025, with nearly half of the US$1.2 trillion appropriations allocated and approved to projects.6
Further, funding allocated in the Inflation Reduction Act of 2022 allocated additional funds to support energy infrastructure and climate resiliency projects. After taking office in January 2025, President Trump sought to freeze funding for some projects, but those attempts have since been blocked by courts, and the funds have continued to flow to projects.7
The public projects funded by these programmes, along with large private investments into data centres, have continued to anchor the construction industry into 2025 despite economic headwinds for private projects.8
When one of your cases is in need of a construction expert, estimates, insurance appraisal or umpire services in defect or insurance disputes – please call Advise & Consult, Inc. at 888.684.8305, or email experts@adviseandconsult.net.