WASHINGTON — The Associated General Contractors of America updated its Tariff Resource Center on April 2, 2026, posting the latest tariff rates hitting construction materials and issuing clear guidance to contractors: update your contracts now, or risk absorbing costs that can no longer be passed along once a project is signed.
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The AGC's resource page, which tracks an evolving and often volatile federal trade policy landscape, now reflects some of the most consequential tariff levels the construction industry has ever faced. For general contractors, subcontractors and owners managing projects across New York, New Jersey, California, Illinois and beyond, the figures are not abstractions — they are line items that are reshaping bid calculations, procurement strategies and project feasibility every day.
Steel, aluminum and copper now carry 50% tariffs on items made entirely or mostly from those metals. Derivatives made substantially of steel, aluminum and copper carry 25% tariffs. Industrial and electrical grid equipment that contains steel, aluminum and copper is subject to a 15% tariff. Products made abroad but entirely with American steel, aluminum and copper carry a 10% tariff. Associated General Contractors of America
Softwood lumber and timber carry a 10% tariff, while various derivatives of lumber and timber are set at a 25% tariff. Associated General Contractors of America
A global baseline tariff of 10% is also in effect — a time-limited tariff set to expire in July 2026 that does not affect Canada and Mexico or other existing tariffs already in place. Associated General Contractors of America
For construction firms, the practical impact is immediate and compounding. Steel and aluminum are essential in structural framing, beams, rebar, siding and roofing. Copper drives MEP costs across virtually every commercial and residential project. Lumber touches residential framing coast to coast. When the tariff rate on those three categories alone doubles or quintuples from recent baseline levels, every estimate written before those rates took effect becomes a financial liability.
Tariffs are likely to further contribute to volatility in the construction materials market. The best approach is to include a price escalation provision, such as the ConsensusDocs 200.1 Material Price Escalation Amendment, in your construction agreement at contract signing. Associated General Contractors of America
The AGC has also published a dedicated Tariff Memo for contractors working on federal and federal-aid projects, covering the specific circumstances contractors may face when tariffs trigger cost increases mid-project and how to document and navigate those situations.
The organization is additionally urging contractors to baseline pricing assumptions immediately on any active bid, document the current cost of affected materials at time of contract execution and build contingency language into all new agreements that clearly addresses what happens if tariff rates change between signing and materials procurement.
The tariff landscape is not static. The Trump administration has numerous ongoing investigations into potential tariffs on additional products and materials, including critical minerals, robotics and industrial machinery, personal protective equipment, semiconductors and heavy trucks. Associated General Contractors of America Any of those investigations could result in new tariffs with as little as several months of runway.
A key consideration for contractors is that domestic equivalents to imported materials can experience a shift in additional demand due to tariffs, causing the price of domestic materials to fluctuate as well. Associated General Contractors of America In other words, avoiding imported steel by switching to domestic sources does not guarantee price stability — it simply changes which market forces are setting the cost.
For construction firms with projects across multiple states, the AGC also offers a state-level import tool through the U.S. International Trade Administration that allows contractors to look up exactly how much their state imports from any given country — useful intelligence when evaluating supply chain exposure in specific markets.
The message from the AGC is consistent and urgent: the time to revise contract language is before the next project is signed, not after materials costs have moved and the dispute is already underway.
This article is based on the AGC of America's Tariff Resource Center for Contractors, last updated April 2, 2026. The full resource page, including the ConsensusDocs 200.1 amendment, the AGC Tariff Memo and links to federal trade data tools, is available at agc.org.
