Graphic illustrating the potential impact of tariffs on hotel and multifamily development costs.

Thursday, 24 April 2025 / Published in Base4

Are Tariffs About to Shake Up Your Project Costs?

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How Could Tariffs Potentially Impact Your Project Costs?

Trade shifts impact prices and sourcing, potentially rippling through markets and material availability. Potential new tariffs could inflate construction costs, possibly posing challenges for new hotel and multifamily development. Read on.

Optimize Your Project with BASE4

For developers, understanding material price changes is crucial. Many materials have jumped 40% or more! Check out the full list below.

Charts showing the Producer Price Index for various construction materials.

BASE4’s design and cost management expertise is crucial for navigating tariff changes.

Understanding the Regional Impact

Import dependence varies significantly across the U.S. This graphic shows which states are most likely affected by the Canada/Mexico tariffs.

Montana: Montana imports 93% of its goods from Canada and Mexico, the highest of any state. In the construction-related sector, the state imports items like iron and steel and exporting machinery and natural stone. This high reliance on imports from these countries makes Montana potentially very sensitive to tariff changes.^1, 2

Michigan: Showing a significant import percentage of 69% from Canada and Mexico, Michigan’s economy, particularly its large automotive industry with strong cross-border trade with Canada, positions it for substantial impact.^3, 4

Texas: Texas imports key construction materials like softwood lumber from Canada and gypsum/cement from Mexico. Approximately 40% of its total goods imports come from Canada and Mexico.^5, 6

Missouri: With 33% of imports from Canada and Mexico, Missouri could see increased costs on construction materials like lumber and aluminum from Canada.⁷

Vermont: Estimated high import reliance 70% on Canada and Mexico. Major trade with Canada includes electricity, vehicles, and machinery, suggesting potential tariff impact.^8, 9

BASE4 is Here to Help!

In the face of potential tariff impacts on construction costs, BASE4 offers a strategic advantage. Our comprehensive Basis of Design (BOD) and in-house expertise across all aspects of Architecture, Interior Design, Structural, Mechanical, Electrical, and Plumbing engineering empower owners and developers to explore a wide range of options. This allows for informed decisions that help you build faster and cheaper without compromising quality.

Let’s talk about your next project!