Building a new school is a significant investment, and tariffs on imported materials can add unexpected costs to such projects. To illustrate, let’s analyze how tariffs could impact a hypothetical $20 million school construction project, breaking down the materials and costs.
Key Materials and Their Tariff Exposure
Construction projects rely heavily on materials like steel, aluminum, lumber, and electrical components. These materials are often imported, and tariffs can significantly increase their costs. Here's how specific materials are affected:
Steel and Aluminum (25% tariff on steel, 10% on aluminum): Essential for structural frameworks, roofing, and HVAC systems.
Lumber (10–20% tariffs): Used in framing and interior finishes, with most U.S. imports coming from Canada.
Electrical Systems (5–15% tariffs): Components like wiring and lighting fixtures are often imported from China.
Plumbing and HVAC Systems (5–10% tariffs): Many parts for these systems are sourced internationally.
Cost Breakdown of a $20 Million Project
Construction costs typically allocate the budget across several categories. For this analysis:
Category | % of Budget | Base Cost ($) | Tariff Impact (%) | Tariff Impact ($) |
Steel/Aluminum | 12.5% | $2,500,000 | 25% | $625,000 |
Lumber | 7.5% | $1,500,000 | 15% | <