Cory Salisbury
Founder & Fractional CFO • Salisbury Bookkeeping
What Does a 25% Tariff Mean for Your Construction Budget?
A 25% tariff on imported steel and aluminum has direct, measurable consequences for every contractor managing material-intensive projects.
Understanding the Math
On a $300,000 commercial project with $90,000 in steel and aluminum components, a 25% tariff adds $22,500 to your material costs. If your original profit margin was $45,000 (15%), that tariff just cut your profit in half.
How to Calculate Your Exposure
- Identify all imported material categories in your scope
- Determine the tariff percentage applicable to each category
- Apply the tariff increase to your estimated material costs
- Compare the resulting total against your profit margin
Protective Strategies
- Include material escalation clauses with specific tariff language
- Request longer price-lock periods from suppliers
- Build tiered contingencies based on material risk categories
- Consider domestic sourcing alternatives where cost-effective
- Shorten bid validity windows to 30 days
The Bottom Line
A 25% tariff does not have to mean a 25% hit to your budget—but only if you have systems to track, plan, and protect your margins in real time.
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