Most New Tariffs Taking Effect on Aug. 1
Will Have Little Impact on Industry: Skanska
NEW YORK—Amid a background of softening economic growth in the first half of the year, Skanska released its Summer 2025 Construction Market Trends Report that mostly dispels the concerns that tariffs will have on business plans on the industry. Leveraging its Composite Construction Index on Aug. 14, it reported that 17 of the 25 countries targeted by new tariffs account for less than 1% of total US imports.
As a result, the majority of the new country-specific tariffs that took effect Aug. 1 are expected to have little to no impact on construction material pricing. The most significant effects will be felt on materials imported from the European Union (EU), Mexico and Canada. However, goods imported from Canada and Mexico may be eligible for tariff exemptions if they are compliant with the United States-Mexico-Canada Agreement, Skanska’s report stated.
“Uncertainty has been the defining topic of the construction industry in 2025 as evolving policies and market pressures create unprecedented challenges for owners and builders alike,” said Steve Stouthamer, executive vice president of Project Planning at Skanska USA Building. “Despite this, many projects are not only advancing but finding new opportunities—highlighting the critical importance of staying closely connected to the supply chain, shifting market conditions and proactive planning in today’s complex environment.”
Other key report highlights included:
Total construction starts were up 16% in June 2025 to a seasonally adjusted annual rate of $1.33 trillion, driven by strength in manufacturing and data center construction.
Construction costs remain volatile, especially for key materials:
• In 2025, prices for common copper pipe diameters are up over 40%, while copper wire has risen 14-17% since the start of the year. Rising copper costs have driven copper pipe prices up more than 30% in 2025.
• Wide flange steel prices increased by nearly 10%, including a $40 per ton jump in June.
• The average price of one yard of concrete is up 9% year-over-year with minor tariff impacts since three-quarters of U.S. cement is produced domestically.
• Mineral wool insulation prices increased by 8% in July, driving bid prices higher.
Construction unemployment remained unchanged in July at 3.4%, driven mainly by nonresidential increases, while year-over-year construction employment grew by 1.2%, though only 2,000 jobs were added that month.
Skanska’s Composite Construction Index showed an annual increase of nearly 4.5% in key trades, contributing to a 3.4% rise in the overall Composite Index for the 12 months ending in August. This is almost a full percentage point higher than the ENR (Engineering News-Record) indices.
Lead times for HVAC equipment remain stable, but a 10%-12% price increase is expected in 2025 due to tariffs and demand. Lead times for large data center generators have improved but still range from 37 to 104 weeks. Electrical gear lead times are decreasing yet remain high for switchgear, switchboards and transformers, with prices up 8%-10% driven by tariffs and demand.
Published: August 20, 2025.