Steel and aluminum tariffs have become one of the biggest cost drivers in construction this year. Imports of steel, aluminum and copper-containing products face tariffs as high as 50%, according to the Associated General Contractors of America, and domestic producers have largely raised their prices to match. The result is a jump in the cost of almost everything made of metal, from structural steel and rebar to ductwork, wire and storefront framing.
Why steel and aluminum tariffs raise prices even on domestic metal
A common assumption is that tariffs only affect imported material. In practice, domestic mills and fabricators price against the market. When imported steel and aluminum become more expensive, domestic sellers can raise their own prices and still win the order. AGC chief economist Ken Simonson noted in July that domestic metal sellers have largely matched prices on imported products, which is why contractors see increases even when they buy American-made material.
Tariffs are also stacking on top of other pressures. Higher fuel prices raise the cost of producing and hauling metal, and ABC reports that overall construction input prices rose 11.2% in the year to September 2026, the largest annual increase in nearly four years. ABC's Anirban Basu pointed to tariffed materials like iron, copper and other metal products as a major part of the increase.
Which trades are most exposed
Almost every project uses metal, but some scopes carry far more exposure than others:
- Structural and miscellaneous steel. Beams, columns, joists, deck, stairs and rails are priced largely by weight, so a percentage increase in steel flows straight into the bid. See our structural steel estimating.
- Rebar. Reinforcing steel is a large share of concrete costs on heavily reinforced structures. See rebar estimating.
- Doors, windows and storefront. Aluminum framing, curtain wall and hollow metal doors and frames are all exposed. See doors and windows estimating.
- MEP systems. Copper wire, copper pipe, ductwork and electrical gear carry tariff-driven increases. See MEP estimating.
- Metal framing and roofing. Light-gauge studs, metal roofing and flashing are all steel or aluminum products.
How tariffs are changing construction bids
The biggest change is not simply that bids are higher. It is that metal prices quoted a few weeks before bid day may no longer hold. Suppliers are shortening quote validity, adding price escalation language, or quoting only for immediate orders. Contractors who lock in a fixed price for work that will be bought months later are taking on risk that used to be manageable.
Owners are reacting too. Rising costs are one of the main reasons projects are being postponed or scaled back, and some owners are asking for alternate materials or phased scopes to keep projects moving.
How to price metals accurately in a tariff market
- Quantify metals precisely. Tonnage, linear feet and piece counts from a detailed takeoff are the foundation. A small error in quantity is magnified when unit prices are rising.
- Get current supplier quotes close to bid day. Use the most recent pricing you can, and note the date and validity of each quote in your estimate.
- Separate metal-heavy line items. Break out structural steel, rebar, aluminum framing and copper so you can see exactly how much of the bid is exposed to tariffs.
- Use escalation clauses where you can. Tie metal prices to a published index with a baseline and trigger. Our guide to fuel prices and construction costs covers how to structure them.
- Price alternates. Offer owners options such as alternate framing systems or finishes where the design allows.
- Revisit your backlog. Projects bid early in the year may need repricing or a conversation with the owner before materials are purchased.
How NYNMO Estimating can help
Accurate quantities and current pricing are the best protection when tariffs move metal prices. Our estimators produce detailed takeoffs for steel, rebar, openings and MEP systems, with metal-heavy items broken out so you can see your exposure. Estimates are delivered in 24 to 48 hours, so the prices in your bid are as current as possible, and revisions are included when suppliers re-quote.
If you have a metal-heavy bid coming up, send us your plans for a free quote.
Frequently asked questions
How much are tariffs on steel and aluminum?
According to AGC, imports of steel, aluminum and copper-containing products face tariffs as high as 50% in 2026. Exact rates depend on the product and country of origin, so check current rules with your suppliers.
Do tariffs affect domestic steel prices?
Yes. Domestic producers price against the market, so when imported steel and aluminum become more expensive, domestic prices tend to rise as well. AGC reports that domestic sellers have largely matched import prices.
Which construction trades are most affected by tariffs?
Structural steel, rebar, aluminum storefront and curtain wall, metal framing, roofing and MEP systems that use copper are the most exposed, because metal makes up a large share of their material cost.
How can contractors protect bids from tariff increases?
Use detailed quantities, get current supplier quotes close to bid day, break out metal-heavy line items, shorten quote validity and use escalation clauses where possible.
- AGC: Construction input costs remain sharply higher than a year ago (July 15, 2026)
- California Construction News: U.S. construction input prices rise 11.2% over 12 months (ABC)
- Equipment World: Soaring Diesel, Material Prices Hit Construction Contractors
Figures are current as of October 2026. Tariff rates and material prices change frequently, so confirm current pricing with suppliers before bidding.