The Trump-Era Tariffs: What to Expect and How to Prepare Your Concrete Business

Concrete is the most widely used man-made substance on the planet. Its affordability and strength make it vital for everything from skyscrapers to highways. In the US alone, over 86 million metric tons of concrete are poured annually. But this industry, like so many others, is now grappling with the potential consequences of the Trump administration tariffs. These trade policies, intended to protect domestic industries and address trade imbalances, have disrupted supply chains and sparked affordability concerns across the sector. 

In this article, we’ll delve into the current and potential effects of these tariffs on the concrete industry, offer predictions for the coming years, and provide actionable strategies for businesses to help stabilize operations.

How Will Tariffs Impact the Concrete Industry

To grasp the impact of tariffs, you have to understand what they don’t affect. Concrete is largely a domestic product due to its perishability and high transportation costs. The U.S. produces roughly 75% of its cement, with major suppliers like LafargeHolcim and Cemex operating extensive facilities. Imports, mainly from Canada, Mexico, and Turkey, account for around 25% of cement consumption and are typically concentrated around coastal regions.

While the majority of concrete is domestically produced, sourcing even 25% of cement from tariffed countries can drive up costs, creating serious pricing pressure across the industry

Its production and delivery also depend on materials and equipment that come from abroad, and will be affected by these trade policies. The tariffs, including 25% duties on steel and aluminum from countries like China, Canada, and Mexico, and the 10% universal tariff on all imports, have sent ripples through the construction sector. Steel tariffs have increased the cost of rebar, critical for reinforced concrete, by 5-10% (recent reports noted a $40 per ton hike in early 2025). Energy tariffs, particularly on Canadian imports, have raised the cost of cement production, an energy-intensive process, and transportation, which is vital for delivering concrete to job sites. 

For concrete pumping and volumetric mixing, that impact is compounded: not only are raw material costs rising, but the specialized machinery—pumps, mixers, and trucks—rely on imported components from tariffed countries like China. This has driven up equipment maintenance and replacement costs. It squeezes profit margins and forces businesses to either absorb losses or pass costs onto clients, risking reduced demand.

The tariffs also produce instability in the greater supply chain. For example, tariffed countries are likely to retaliate with their own trade barriers. That could mean tedious regulations on US companies, or limits on how much a company can import from a tariffed country. For concrete firms, this could mean waiting weeks for a critical pump part, stalling a pour. These disruptions are particularly problematic for time-sensitive operations, where delays can compromise project timelines, quality, and customer satisfaction. That can turn into lost revenue.

The broader construction market is also under pressure, with material costs for projects projected to rise by 5-7% in 2025. For multifamily developments, this could push total budgets up, threatening affordability and potentially stalling projects in cost-sensitive markets. The pervasive role of concrete in construction amplifies these effects—what might seem like a modest price hike in cement or steel reverberates across the entire construction ecosystem, from developers to contractors to end users. 

Looking Ahead: Some Predictions for 2025-2028

1. Thinner Margins Everywhere: Suppliers, subs, and GCs will likely all see profits shrink, prompting cost-cutting measures like layoffs, skimping on equipment maintenance, or using lower-grade materials—moves that could compromise safety or quality.

   
   

2. Fiercer Competition: Businesses might slash prices to win contracts, sparking price wars that hurt everyone’s bottom line in the long run.

   
   

3. Delayed or Canceled Projects: Higher costs can stall construction, leaving concrete firms with idle crews and equipment. The American Institutes of Architects forecasts a dramatic decline in nonresidential construction starts in 2025 and 2026, if costs continue to climb. This could reduce demand for concrete services. However, federally funded infrastructure projects could provide some relief, sustaining demand for concrete services. 

   
   

4. Disappointing Efforts to Scale Domestic Production: While tariffs aim to boost U.S. manufacturing, the concrete industry’s ability to scale is limited—new cement plants take 2-3 years to build. This leaves businesses exposed to cost pressures in the short term.

   
   

5. Enthusiastic Tech Adoption: The need to offset costs might actually spur innovation. Companies may accelerate adoption of automation and digital tools, including but not limited to the software they use. Concrete pumping and volumetric companies could also invest in software with real-time monitoring of their trucks. Volumetric providers can also optimize mix designs, using software to reduce waste.

How to Stabilize Your Concrete Business: Tips for Owners

Pumping and volumetric concrete businesses can take these steps to navigate the challenges introduced by tariffs:

• Make Technology Work for You: Tech can be a huge help when it comes to trimming fat in your operations, or reducing wasteful spending and under-billing. When margins are this tight, solutions like this matter more than ever. Concrete job management software, like Tough Commerce, can streamline scheduling, track material usage, and improve coordination, reducing waste and offsetting cost increases. 

• Transparent Communication: Relationships will be critical during a season with this much uncertainty. Be sure to keep clients informed about potential cost impacts from tariffs, supply disruptions, or material substitutions. It builds trust and helps manage expectations.

• Add Price Escalation Clauses to Your Contracts: Consider adding price escalation clauses in your contracts to cover unexpected surges in material or fuel costs. This helps protect margins without renegotiating every deal.

• Tighten Up Your Cash Flow Strategy: Focus on higher margin projects, impose a strict collections process to help you get paid sooner, and maintain a rolling cash flow forecast. A strict eye on cash flow is always important, but even more so now. Don’t deprioritize it. 

• Have a Team Member Monitor Trade and Market Trends: Have someone in the organization, or use a dedicated service, to track tariff updates, shipping disruptions, and commodity pricing. This helps the business stay ahead of potential impacts and respond quicker than those who only react after disruptions occur.

• Test Alternative Materials: Research cost-effective substitutes for tariff-impacted inputs. That could mean substituting fly ash or slag for cement, or alternative reinforcement materials. These can lower production costs while maintaining performance standards. Still, you’ll need to check local building codes and standards to see if alternatives like fly ash or slag are acceptable.

• Lean Into Energy Efficiency: Mitigate rising energy costs by adopting fuel-efficient trucks, optimizing delivery routes, or exploring renewable energy for production facilities. For concrete operations, regular equipment maintenance also helps reduce energy consumption, so stay on top of maintenance.

• Look to Other Supplier Countries: Diversify suppliers to include countries with lower or no tariffs under current U.S. trade policy. India remains a viable option, along with other countries not facing elevated tariff rates. Additionally, building relationships with domestic cement producers can help secure stable pricing and priority access during shortages.  Collaborative procurement with peers can also secure bulk discounts on materials and equipment.

As the industry navigates the next few years, agility and strategic planning will be key to maintaining affordability and competitiveness. For concrete pumping and volumetric mixing companies, the path forward lies in adapting to these challenges while capitalizing on the enduring demand for one of construction’s most essential materials.

Take a proactive approach to the tariffs by strengthening your internal technology. Check out what Tough Commerce can do for you below.