Buckle up

Editor’s note: This article is for general educational purposes only and does not constitute legal advice.

In 2025, significant changes to U.S. trade policy sent ripples throughout the construction industry. With tariffs now firmly in place and more potentially on the horizon, roofing contractors need to be strategic, informed and proactive to protect their margins and business stability.

What follows is a full breakdown of how we got here, what the current situation looks like and, most importantly, what you should be doing to navigate the marketplace.

How did the plan originate?

The current tariff structure began with the America First Trade Policy memo, which was issued on President Trump’s Inauguration Day, Jan. 20. This memo revived the idea of a baseline tariff on all imports unless trading partners offered what the administration deems “true reciprocity.”

Following that, on Feb. 13, another memo tasked the Department of Commerce and the Office of the United States Trade Representative to rank surplus trade partners and create sliding tariff bands based on trade surplus amounts. In other words, the bigger the trade imbalance, the higher the tariff. The strategic goal was clear: to reshore critical supply chains (such as those involving steel, aluminum and minerals) and pressure high-surplus partners to negotiate better trade deals.

Since the policy announcement, the following developments have unfolded:

• Feb. 10–11: Section 232 duties were expanded to 25% on all steel and aluminum imports, ending previous country exemptions. (Section 232 of the Trade Expansion Act of 1962 permits the U.S. president to restrict imports, including by use of tariffs, if they are perceived to be a threat to national security.)
• March 4: Broad 25% tariffs were imposed on most Canadian and Mexican goods and 10% on most Chinese goods. However, goods compliant with the United States-Mexico-Canada Agreement were paused temporarily.
• March 12: The 25% worldwide steel and aluminum duty was formalized.
• April 2: Executive Order 14257 created a 10% baseline tariff on all imports with nonreciprocal trading partners facing tariffs between 25% and 50% effective April 5.
• April 13–23: Some carve-outs were negotiated (mainly in electronics), and preliminary talks with China began about reducing rates though significant relief isn’t expected until late 2025.
• May 12: China and the U.S. agreed to a 90-day pause scaling back a large portion of the increased tariffs. For the 90-day negotiating window, the White House has reset duties on Chinese imports to a single 30% rate. That figure combines the Trump administration’s two-stage 20% “fentanyl tariff” with its 10% baseline reciprocal tariff applied to many nations. The new rate scales back the 34% reciprocal tariff unveiled April 2 and the subsequent hike to 125% both of which were suspended.

Where we are now

The events have been fast-moving with changes occurring weekly and sometimes daily. What follows is the current situation as of press time:

• There is a 10% baseline tariff on nearly all imports.
• The 25% Section 232 duty remains on all steel and aluminum globally.
• For Canada and Mexico, USMCA-compliant goods are duty-free. Noncompliant goods face the full 25% duty.
• Most Chinese imports now face a 30% tariff.
• Allied nations are experiencing a temporary 90-day pause. Only the 10% baseline tariff applies through early July.

For those working with Canadian or Mexican suppliers, USMCA stipulations still apply. Goods that meet the agreement’s content and value-add requirements enter the U.S. duty-free. However, items that fail origin tests will be subject to the new 25% tariff.

The new reciprocal tariff regime does not override USMCA, but contractors must carefully verify the origin documentation on all materials coming from these countries.

With tariffs now firmly in place and more on the horizon, roofing contractors need to be strategic, informed and proactive to protect their margins and business stability.

How roofing is affected

The roofing industry is feeling the effects. Metals used in roofing (such as coated steel and aluminum coil) generally have increased as a result of tariffs.

An Associated Builders and Contractors industrywide survey showed average contractor margins are down 2.4 points, and a Plant-Tours survey found more than 50% of the construction sector has reported delays or cancelation of at least one project.

In addition, most material quotes from suppliers are now valid for only seven to 10 days and often include tariff contingency clauses to cover sudden cost spikes.

What suppliers are doing

Manufacturers and distributors are not standing still. They are adopting the following strategies:

• Dual-sourcing and near-shoring: Many original equipment manufacturers are shifting light-gauge roll-forming operations back to U.S. or Mexican facilities.
• Tariff surcharges: Monthly surcharges appear on more invoices as manufacturers pass increased costs down the chain.
• Inventory smoothing: Distributors are holding higher safety stocks on tariff-sensitive products until the 90-day allied pause expires in early July.
• Stocking up: Suppliers are using free trade zones and bonded warehouses for temporary storage.

What to expect

You should be prepared for ongoing turbulence, including these possibilities:

• Metal premiums: The 25% steel and aluminum tariffs have become standard in pricing models, so they are likely to remain in place for the foreseeable future.
• Material substitution: To control costs, the industry can expect more design shifts to account for tariff effects.
• Longer lead times: Specialty metal roofing products could require increased lead times.
• Contract changes: Contracts will increasingly feature escalation clauses and shorter bid validity periods.

The situation with China remains particularly volatile. The 90-day pause did not eliminate all steel and aluminum tariffs. Chinese steel and aluminum now carry the long-standing 25% Section 232 duty and an additional 20% fentanyl surcharge, bringing the aggregate tariff burden to roughly 45%. Supply chain risks are growing, and Chinese mills are signaling production cuts and longer delivery timelines, which could affect roofing materials sourced from China.

Although negotiations have brought some relief as of press time, do not assume these negotiations will eliminate the tariffs. If you rely heavily on Chinese metal products, immediately explore alternate sourcing strategies.

What you can do

Here are six essential actions to implement right away:

1. Audit your materials. Identify any products in your supply chain with at least 25% import content. Pay special attention to metal roofing components, including fasteners and panels, as well as insulation. Track your inventory through software that provides you with real-time data.
2. Shorten your bid validity. Shrink your quote validity periods to 15 days or less. Use “accepted when ordered” language to protect yourself from sudden price hikes.
3. Diversify and pre-buy. Widen your supplier network to include multiple vendors, preferably domestic or USMCA-compliant ones. When cash flow permits, pre-buy critical materials to lock in pricing.
4. Educate customers. Proactively explain to owners how tariffs affect material costs. Clear communication now will help ensure change-order approvals go smoothly later.
5. Monitor federal notices. Changes can happen fast, often with as little as 10 days’ notice. Keep an eye on Federal Register notices and work with an industry association or construction attorney to stay informed. You can access the notices on federalregister.gov and set up email alerts to receive prompt updates.
6. Update your contracts. Renegotiate escalation clauses tied to published indices for construction materials. Also, include provisions allowing you to pause work if materials become unavailable or costs spike unexpectedly.

The following price acceleration provision may prove valuable in the current climate:

“If there is an increase in the actual costs of the labor or materials charged to the Contractor in excess of 5% subsequent to making this Agreement, the price set forth in this Agreement shall be increased without the need for a written change order or amendment to the contract to reflect the price increase and additional direct cost to the Contractor. Contractor will submit written documentation of the increased charges to the Prime Contractor/Owner upon request. As an additional remedy, if the actual cost of any line item increases by more than 10% subsequent to the making of the Agreement, Contractor, at its sole discretion, may terminate the contract for convenience.”

For commercial projects, you may consider a tariff-specific clause that provides a mechanism to resolve potential project disputes related to material price increases, such as:

“The Contract Sum includes Import Costs (tariffs, antidumping duties, customs fees) in effect as of ______, 2025. If aggregate Import Costs on any shipment increase by more than 5% of the Equipment/Material invoice value, Contractor shall notify Owner in writing within 7 days and may add the excess amount to the next payment application, supported by U.S. Customs entry summaries. Owner may elect to (a) pay the surcharge; (b) furnish tariff free substitute materials meeting specifications; or (c) terminate the affected work for convenience with payment for completed work pursuant to the Contract Documents. Import cost decreases in excess of 5% shall be credited to Owner on the next payment application following the decrease.”

Force majeure clauses also may be useful but are less clearcut when determining the foreseeability of tariff-based price increases. Force majeure or acts of God often depend on whether an event was unforeseeable.

Stay calm

The 2025 tariff environment likely will not improve anytime soon, and it is changing the roofing business landscape. Although the challenges are real, roofing contractors who stay flexible, sharpen their contracts and strengthen their supply chains will be best positioned to navigate this turbulent time.

As you approach projects, do not panic. Instead, adapt early, stay informed and treat material management like a core business strategy and not just a back-office function. Your profitability may depend on it.

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