Blogs & News
- Category: News
- DATE: July 23, 2025
Navigating the Ripple Effects of Tariffs on Construction Solutions: What Clients Need to Know
As a specialty subcontractor operating across a wide array of sectors from science and technology to healthcare, education, and sports facilities, we at H2I Group know that the details behind a project’s cost and schedule are complex. One significant and evolving factor impacting our markets is tariffs.
In recent months, we’ve seen a growing impact from global tariffs, especially on steel, aluminum, and finished products used across our key solution areas: laboratories, technical education, and athletics. Below, we break down what you need to know based on current market insights, supplier feedback, and our hands-on experience.
Tariffs: Why They Matter in Construction
According to DPR’s Q2 2025 Market Conditions Report, tariff concerns are a top issue for subcontractors and manufacturers alike. While tariffs on raw materials like steel and aluminum have been in place for years, recent shifts suggest more aggressive applications, including on finished goods. This means costs may rise not only for the base materials but also for fully assembled products being imported into the U.S.
For context, a 25% tariff on steel applied only to the raw material cost might result in a relatively small increase to the final product price. However, if that same tariff is applied to the total invoiced value of the finished product, the impact could be significant.
Real-Time Observations from Our Team
We’ve been closely monitoring the impact of evolving trade policies on our projects, particularly those involving laboratory products. Here are the key takeaways:
- No Immediate Delays: Clients have not been experiencing significant shipment delays, and our team continues to prioritize alignment with our manufacturers to ensure product readiness.
- Limited Scope Tariffs: In many cases, tariffs have been limited to specific raw materials, such as steel and aluminum, and not applied to the full product value. Some products, like fume hoods, may be exempt depending on classification.
- Steel Price Increases: Domestic steel mills have increased prices in response to market pressures, with some mills limiting orders to create artificial scarcity.
- Material-Based Impact: U.S. manufacturers buying cold-rolled steel from domestic mills are seeing cost increases driven by material price hikes.
Product Area Impacts:
Laboratory Products
Our lab solutions include casework, fume hoods, countertops, benches, and service panels. These products are often assembled in the U.S. but rely on components sourced globally:
- Casework and Benches: Even “Made in USA” products may use imported steel, brass, and hardware, all vulnerable to tariffs.
- Fume Hoods & Service Fixtures: While some are exempt, many include imported parts that may face duties depending on origin.
Multi-Country Sourcing: Some components can be assembled in multiple countries helping reduce risk in some cases.
Technical Education Products:
Technical education spaces blend high-tech equipment with functional furniture and cabinetry.
- Imported Technology: CNC routers, robotics kits, and 3D printers often come from Asia or Europe and can be heavily tariffed. On August 1st, it will be 30% or more.
- Furniture and Fixtures: U.S.-assembled furnishings may still rely on imported metals or hardware.
- Volatile Freight & Duties: International shipping costs and duties have fluctuated by as much as 15-25% over the past year.
Athletics & Storage Solutions
Products like lockers, bleachers, seating, and athletic flooring can be impacted by material cost changes:
- Steel & Aluminum Components: Raw material tariffs increase framing and structural component costs.
- Imported Finished Goods: Certain seating and locker systems may be assembled overseas and subject to full-value tariffs.
Stay Connected with Your H2I Group Team
Trade policy changes are frequent and unpredictable. We work closely with our manufacturing partners and will keep you informed during your project to ensure clarity, minimize disruption, and select the best-fit manufacturers based on your specific needs.
H2I Group has multiple manufacturers, both US-based and abroad which gives us a unique perspective on how tariffs can impact every market.
Final Thoughts
Tariffs may seem like a distant policy issue, but for project teams and owners, their impact is tangible and immediate. From a rise in material prices to unexpected costs on imported finished goods, the financial and logistical effects are real.
At H2I Group, we remain in close contact with manufacturers, track regulatory updates, and stay agile in our procurement strategies to protect your projects. If you have upcoming work in lab, athletic, or technical education spaces and questions on how tariffs may impact those projects, please contact your H2I Group representative.
Let us help you build smarter in a changing world.
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