Contractors have been bracing for a trade war since President Donald Trump’s election in November. Now it has arrived.

On Tuesday, Trump imposed a 25% tariff on goods from Mexico and most of Canada, along with an additional 10% tariff on Chinese imports. Those followed others the Trump administration rolled out quickly after taking office, beginning with a 10% tariff on Chinese imports on Feb. 4.

Next up, on March 12, the Trump administration intends to enact a 25% tariff on all steel and aluminum imports worldwide, adding another layer of cost pressure.

But construction had already been feeling the ripple effects even before these measures took effect.

Prices for key inputs surged in January as contractors rushed to stock up on materials ahead of the deadlines. Now that tariffs are in place, the pressure is shifting to project budgets, contract negotiations and overall construction activity.

While some firms have found ways to mitigate risks through certain contract clauses, uncertainty remains high, particularly for projects with fixed-price contracts.

Adding to the tension, long-time trading partners have responded with their own set of tariffs. Canada and Mexico moved swiftly Tuesday with retaliatory measures, while China imposed additional fees of its own. That back-and-forth between nations is fueling concerns about prolonged supply chain disruptions.

Below, Construction Dive unpacks how these tariffs have unfolded and what they mean for the construction industry.