Tariffs could mean higher construction costs in Burke County

The tariffs proposed by the Trump Administration recently will almost certainly drive up the cost of construction in Burke County.

Just how much of an increase there will be is anyone’s guess, especially after last Wednesday, when Trump halted tariffs on some countries for 90 days.

As a group, area building contractors and suppliers were decidedly tight-lipped when it came to predictions.

Some might be afraid of the repercussions of speaking on a hot-button political issue, but most seem genuinely unsure of what might happen in the coming weeks and months as the tariffs begin to take a toll on the prices of materials like lumber, steel, and gypsum products (drywall).

“I’d be shooting in the dark if I tried to say anything right now,” said Allen Devinney, co-owner of Hawkins Lumber Company in Marion. “In a couple of weeks, I might be able to answer some of your questions, but I’d be afraid to go out on a limb at this point.”

Devinney was one of the few who offered even that much of a reaction.

Eddie Wall of Wall Lumber Company in Morganton, declined to be interviewed, as did the folks who run Catawba Hardwoods in Hickory. The manager at Lowe’s of Morganton said the corporate office handles all such inquiries, but a request for comments from them went unanswered. Stewart McKee of McKee General Contractors wouldn’t talk, nor would Steve Leadbetter of Cottonwood Development.

The list goes on. And uncertainty reigns.

Wes Taylor of Ridgeline Builders, who said he steers clear of politics altogether — “I’m just the type that don’t like politics and don’t watch the news; I just try and stay out of it,” he said — hasn’t noticed any significant changes yet.

“I haven’t seen much fluctuation in wood or plywood or anything like that,” Taylor added. “I know some of our window and vinyl siding people say there might be some escalation at some point.”

Common sense says prices may rise precipitously.

The National Association of Home Builders (NAHB) said last week the U.S. used $204 billion worth of construction materials in 2024, with $1.4 billion of that, 7%, coming from foreign countries.

The NAHB also said 72% of sawmill and wood products used in the U.S. come from Canada. Mexico produces 74% of the gypsum products used in the U.S. each year.

In addition to the latest proposed tariffs, Canada already pays 14.5% on softwood lumber, and the Department of Commerce is expected to roughly double that total this fall. That would mean a tariff rate of more than 50% on Canadian wood products.

Steel and aluminum will likely be more costly as well.

Mike Stroud, a Burke County commissioner who owns Stroud’s Builders Supply, which specializes in steel trusses, said he’s sure the tariffs will make materials more expensive, but he’s trying to see the big picture and hopes Trump’s move will pay off in the future.

Stroud said steel trusses, which offer longer life spans than their wood counterparts, are “sweeping the nation,” and he’s optimistic the industry will remain strong.

“You know, it’s going to affect us in the beginning. But I think it’s a good time to get a reset,” Stroud said. “They said steel is going to go up. But everything goes up. That’s been true the whole time I’ve been in business.

“What concerns me is prices go up, but people’s wages are not going up, and I want people in Burke County to have a good quality of life.”

Anecdotal evidence has circulated locally that some builders and suppliers bought up unusually large amounts of materials in anticipation of the tariffs couldn’t be confirmed, but the businesses who spoke to The Paper said they hadn’t seen that happen.

“We’re blue-collar,” Stroud said. “We haven’t been able to build up any kind of inventory or buy ahead or anything like that. We’ve never had the resources to do that.”

The venture into tariffs puts the country’s entire construction industry in uncharted waters.

Brian Gallagher, vice president of corporate development for Illinois-based contractor Graycor, wrote an op-ed piece for industry website constructiondive.com. In it, he said building costs have “never been more volatile.”

Gallagher specifically cited steel, aluminum, and lumber as three areas that would be hit hardest by the tariffs.

Other construction products likely to go up include electrical components, plumbing fixtures, HVAC systems, and fasteners and hardware, Gallagher said.

Trump also placed a 25% tax on imported vehicles.

Trump says he wants the U.S., which buys more than it sells globally, to overcome a trade deficit. His apparent long game is to stimulate a resurgence in domestic manufacturing.

Opponents of the move have said it’s a “national disaster.” They insist the tariffs will only serve to hurt U.S. consumers already burdened by heavy inflation.

Anticipation of the tariffs drove down the stock market considerably and made investors nervous, although the market rebounded when the pause was announced.

If Burke builders and suppliers are nervous, they aren’t saying much about it. Not yet, anyway.