A reduction in the price of some construction materials may prove to be one result of last week’s U.S. Supreme Court decision regarding a component of President Trump’s overall tariff policies.
In a 6 to 3 vote, the court ruled that the President does not have the authority to impose tariffs, as he has, under the International Emergency Economic Powers Act. Justices in the majority opinion said such tariff questions remain the province of Congress.
The decision, notes a release issued by the Associated Builders and Contractors, may contain a silver lining for builders.
“The construction industry could see a modest but meaningful reduction in materials price escalation,” remarked Anirban Basu, chief economist with the association, in a statement.
The impact may especially be seen in “manufactured components like specialty equipment, HVAC and electrical systems, and fixtures,” continued Basu.
A second component of the decision, a possible refund to builders for construction materials purchased at an increased price because of the tariff, appears murky.
“We’ve been cautioning our members for some time now that it is unlikely they will see any refunds for materials purchased during the past year,” Brian Turmail, vice president of public affairs for the Associated General Contractors, remarked to Construction Dive.
Various reports have suggested that importers and businesses that paid the Trump tariffs could be eligible for a total of up to $175 billion in refunds.
In a statement, the National Association of Home Builders said that for now the uncertainty created by the court decision “leaves tariff policy in a state of chaos, which will likely result in additional complex litigation.”
Analysts also think the court decision will not have a significant impact on the price of construction equipment primarily because steel and aluminum tariffs were imposed last summer under the Trade Expansion Act, which was not addressed by the ruling.
Tariffs on such materials as aluminum, copper, lumber, and steel are also not affected by the court decision. Notes the site Construction Owners: “Those materials account for major cost drivers in infrastructure, industrial and multifamily construction, limiting the overall financial impact of the ruling.”
February 24, 2026
By Garry Boulard
Photo courtesy of Pixabay
