Tariffs and Supply Woes Drive Metal Prices Higher, Squeezing U.S. Construction Industry

SNIPS NEWSSheet Metal And HVAC Industry NewsColumns Tariffs and Supply Woes Drive Metal Prices Higher, Squeezing U.S. Construction Industry Metal costs soar on tariffs as construction spending falters; trade groups urge Congress to act By Austin Keating Staff photo / Courtesy of AGC and ABC SHOP TALK: The Associated General Contractors of America (AGC) and Associated Builders and Contractors (ABC) both report rising material costs and declining construction spending, urging policy action from Congress. March 2, 2026 Construction firms are facing a one-two punch: surging costs for metals like aluminum, steel, and copper, paired with a drop-off in nonresidential building activity, according to new data and analysis from two of the industry's largest trade organizations.The price of key construction materials jumped again in January, led by steep increases in aluminum and steel – up 33% and 20.7% year-over-year, respectively – amid tariffs that industry leaders say are emboldening domestic producers to raise prices. Copper and brass prices also climbed 15.7% over the same period. The producer price index for nonresidential construction inputs rose 2.9% over the past year, according to the Associated General Contractors of America (AGC). “Steep tariffs on imported metals and products are clearly enabling U.S. sellers to push up costs,” said Ken Simonson, AGC’s chief economist. “Providing domestic producers with greater certainty about future demand should encourage greater pro...