Optimism within the U.S. construction industry has waned in the aftermath of President Donald Trump’s unpredictable trade policies, according to Thomas Hasler, CEO of Swiss construction chemicals maker Sika. Speaking after the company reported first-quarter sales, Hasler noted a shift in sentiment due to the tariffs imposed on Mexico and Canada.

"We had a very strong start to the year and people were very optimistic about infrastructure investments and reshoring," said Hasler. However, following Trump's tariff announcements, the mood shifted dramatically. "Everything started to slow down," he added, pointing out that several projects were either delayed or placed on hold.

Sika, a company known for its chemical additives used to strengthen and waterproof construction materials, has seen its sales growth slow in North America, signaling a broader downturn in the U.S. market. While construction remains a local business, it is indirectly affected by the larger economic climate shaped by trade tensions.

Hasler explained that while construction itself wasn't directly impacted by tariffs, the uncertainty surrounding supply chains and reshoring plans had a ripple effect. "Some of the projects have been pushed out, projects that were indicated to launch soon have been put on the backburner," he said.

Despite the challenges, Hasler emphasized that the infrastructure sector has remained "very resilient" in the U.S., offering some hope amidst the broader slowdown. However, with the current unpredictability of the market, he could not say how long the uncertainty would last. "The situation could change at any time," he noted, reflecting on the volatile nature of global markets.

This cautious outlook on the U.S. construction industry highlights the deepening impact of global trade policies on the sector, leaving many companies waiting for clearer direction before making significant investment decisions.

Originally reported by John revill in Reuters.