Weekly Tariff & Construction Cost Snapshot As of July 7, 2025

Overview

# KOW Building Consultants — Weekly Tariff & Construction Cost Snapshot

As of July 7, 2025 Use this data at your own risk

🔥 Current Concern Level: High

Ongoing tensions in Iran, Gulf shipping risks, EU tariff uncertainty, and rising oil prices keep construction cost volatility elevated.

📈 Estimated Construction Cost Increases (due to 2025 tariffs)

Building Type

Added Cost

Change vs Last Week

Wood-Framed

+3% – 5%

➡️ (steady)

Poured Concrete

+5% – 8%

Structural Steel

+8% – 12%

Watch for *diesel fuel surcharges to add +1–2% on delivered goods by mid-July

🛢️ Geopolitical / Fuel Impacts

Iran: Threats to close Hormuz; insurance on Gulf shipping +20%.

Oil: Brent crude now ~$86 (+6% this week).

Diesel: +4% futures — expect surcharges to hit site deliveries soon.

⚡ Trump Tariff Bill (Section 301 expansion)

A new package was finalized in late June. This expands 301 and includes specific reciprocity duties on China. It reinforces the 55% blended China rate, with no near-term easing.

This affects machinery, HVAC, electrical, plus indirect inputs like tools and small fixtures.

🔭 Looking Ahead

July 9: EU vote on +50% tariffs — steel and aluminum costs could spike another 5–10% if enacted.

Mid-July: Diesel surcharges likely on concrete and lumber.

The outcome of Japan's auto tariff is expected in Q3. More Gulf shipping reroutes are possible, adding lead times on fixtures, tile, and electrical.

✅ Quick Takeaways for KOW Clients & Projects

I am happy to report that I personally have not seen an increase yet on a large scale in construction project buyouts. The vast majority of supers are still saying the pricing is held or slightly up, but nothing they can’t adjust for. The market is reacting very well so far, in my opinion.

One thing to look for is ICE raids in cities such as LA, Miami, or NY, where it may impact workers showing up to construction sites. One super told me he has some guys afraid to show up, even though legal, because they don’t want to go through the hassle of being detained and then released.

Conclusion

In summary, the construction industry is facing significant challenges due to geopolitical tensions and tariff increases. It is crucial for stakeholders to stay informed and adjust their budgets accordingly. The volatility in costs can impact project timelines and overall feasibility.

By keeping an eye on the evolving situation, including potential tariff changes and fuel surcharges, construction professionals can navigate these challenges more effectively.

For more insights and updates, stay connected with KOW Building Consultants.