Tariffs challenge cost and timeline confidence

The 2025 tariff environment, marked by steep increases on steel and copper, exerted measurable pressure on Chicago construction projects. While most contractors report that the impacts of steel tariffs have largely been absorbed into current pricing, volatility persists in metal-related materials. According to Turner & Townsend’s Chicago Construction Sentiment Survey, 64.0 percent of respondents noted stabilizing steel prices, but 27.0 percent confirmed tariffs on copper and steel conduit have significantly impacted electrical costs, and plumbing materials are showing above-normal escalation with further increases anticipated next quarter. Specialty imports, such as custom lighting, also remain vulnerable to tariff-driven cost spikes and extended lead times.

Nationally, Turner & Townsend’s 2025 US market intelligence report confirms this trend. Steel import duties doubled to 50.0 percent in June, and a 50.0 percent copper tariff implemented in August is expected to drive further material inflation. While overall escalation remains near historic norms at 4.0 percent for 2025, metals-driven cost increases are offsetting declines in other commodities, keeping contractors cautious.

Private-sector projects, already constrained by high financing costs, are particularly sensitive to these added pressures, which contributed to the contracting pipeline in 2025 despite steady public-sector and data center activity. These pressures are expected to persist as contractors and clients continue navigating the evolving tariff landscape and its ripple effects