Materials tariffs lift prices: aluminium +28%

U.S. tariffs on aluminum, steel and copper have become a direct cost line for builders, not just a trade-policy headline. (whitehouse.gov) (nahb.org) President Donald Trump’s April 2 proclamation said the administration was “strengthening” earlier Section 232 actions on the three metals after earlier 2025 moves on steel, aluminum and copper. The White House says the duties are meant to protect domestic producers on national-security grounds. (whitehouse.gov 1) (whitehouse.gov 2) For construction, the mechanics are simple: a tariff is a tax paid at import, and importers usually pass at least part of that bill into bids, purchase orders and final project costs. The National Association of Home Builders says about $14 billion of the $194 billion in goods used in new U.S. housing in 2025 were imported. (nahb.org) Federal price data show why metals are getting attention. From April 2025 to March 2026, the Bureau of Labor Statistics index for steel mill products rose 9.2%, iron and steel rose 8.2%, and secondary aluminum rose 22.1%. (bls.gov) Other metal categories moved even faster. The Bureau of Labor Statistics index for primary nonferrous metals — a category that includes aluminum and copper products — climbed 72.4% between April 2025 and March 2026. (bls.gov) Product-level series show the same pattern, though less dramatically than some viral summaries. March 2026 data put extruded aluminum shapes at a record 230.301, while copper wire and cable stood at 535.32, up 18.8% from a year earlier. (fred.stlouisfed.org 1) (fred.stlouisfed.org 2) Home builders say those increases are already landing in house prices. The National Association of Home Builders said in its April 2025 survey that builders estimated recent tariff actions added a typical $10,900 to the cost of a home. (nahb.org) Commercial developers are modeling the same problem at project scale. Cushman & Wakefield estimated current tariff rates as of April 7, 2026 would raise construction materials costs 6.0% relative to a 2024 baseline and total project costs about 3.0%. (cushmanwakefield.com) Contractors are responding by rewriting contracts and procurement plans before they redesign buildings. The Associated General Contractors of America says firms are tracking 50% tariffs on items made mostly from steel, aluminum and copper, along with lower rates on some derivative products and equipment. (agc.org) That is one reason prefab and modular construction keep coming up in cost talks, though tariffs do not automatically make factory-built projects cheaper. Modular systems still use steel, aluminum, copper and electrical gear, so the savings case depends on labor efficiency, schedule compression and how much material can be locked in early. (nahb.org) (agc.org) The current story is less about one metal spiking on one day than about a new baseline. Tariffs that began as trade measures are now embedded in the cost math for housing, warehouses, offices and public projects. (whitehouse.gov) (cushmanwakefield.com)