{"id":525375,"date":"2025-07-23T12:45:56","date_gmt":"2025-07-23T11:45:56","guid":{"rendered":"https:\/\/www.constructionnews.co.uk\/?p=525375"},"modified":"2025-07-23T12:46:53","modified_gmt":"2025-07-23T11:46:53","slug":"tariff-wars-could-add-to-uk-construction-woes-warns-report","status":"publish","type":"post","link":"https:\/\/www.constructionnews.co.uk\/supply-chain\/tariff-wars-could-add-to-uk-construction-woes-warns-report-23-07-2025\/","title":{"rendered":"Tariff wars could add to UK construction woes, warns report"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Global tariff wars threaten to delay construction projects and erode contractor profits, a major business insurance company has warned.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Import duties imposed around the world are \u201cthe most immediate and significant challenge\u201d to firms in the building sector, according to QBE.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In April, US president Donald Trump imposed<\/span><a href=\"https:\/\/www.constructionnews.co.uk\/government\/steel-and-aluminium-tariffs-abolished-in-historic-uk-us-trade-deal-09-05-2025\/\"> <span style=\"font-weight: 400;\">trade taxes<\/span><\/a><span style=\"font-weight: 400;\"> of between 10 and 145 per cent on various countries, as he sought to protect domestic interests.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Although he has since revised many of these tariffs and paused their introduction, other nations including Canada and China had raised duties on the US in retaliation.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In a report titled <\/span><i><span style=\"font-weight: 400;\">Trade Tensions and the Construction Sector<\/span><\/i><span style=\"font-weight: 400;\">, QBE says many levies are expected to remain in place \u2013 a situation that is likely to cause \u201csignificant shifts in global trade dynamics\u201d.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cIn addition to direct and indirect cost increases, changes to tariff policies are likely to increase processing times at ports and customs, leading to project delays,\u201d the study says.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It adds that uncertainty over trade is weakening global growth forecasts, noting that the International Monetary Fund warned in April of significant risks to the global economy from the ongoing situation.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cAn economic slowdown would depress demand for residential, commercial and infrastructure projects, particularly in the US but also in other markets,\u201d the report says.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It notes that the UK is reliant on cross-Atlantic trade for almost a fifth of its timber, and has seen prices rise.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Meanwhile, an escalation in tensions between Trump and China could \u201cquickly tighten supply\u201d of copper to this country, QBE warns.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The UK imports 60 per cent of its aluminium, according to the report, and remains \u201cvulnerable\u201d to fluctuations in steel prices.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Neil Fleming, UK construction and engineering portfolio manager at the insurance company, said the impact of the tariff stand-off is \u201ccompounded for British builders\u201d by the country\u2019s net-zero drive.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is driving the specification of certain materials, including timber, just as their prices are increasing, he explained.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cMeanwhile, the sector continues to grapple with a shortage of skilled labour, an imbalance uniquely impaired by reduced immigration to the UK post-Brexit alongside an ageing workforce,\u201d added Fleming.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThis report shows us that the confluence of global supply chain disruptions, rising material costs, labour shortages and sustainability goals presents a complex risk landscape for the UK construction sector.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cProactively engaging with insurers and leveraging specialist solutions will help construction firms manage project continuity and financial stability in the face of some uncertainty this year, and into next.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Construction Products Association<\/span><a href=\"https:\/\/www.constructionnews.co.uk\/sections\/data\/us-tariffs-could-dent-uk-construction-growth-warns-report-28-04-2025\/\"> <span style=\"font-weight: 400;\">warned earlier this year<\/span><\/a><span style=\"font-weight: 400;\"> that UK construction growth could be delayed because of the fallout from US tariff hikes.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Global tariff wars threaten to delay construction projects and erode contractor profits, a major business insurance company has warned. Import duties imposed around the world are \u201cthe most immediate and significant challenge\u201d to firms in the building sector, according to QBE. In April, US president Donald Trump imposed trade taxes of between 10 and 145 &#8230;<\/p>\n","protected":false},"author":87938,"featured_media":359685,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false,"footnotes":""},"categories":[57171,556],"tags":[],"class_list":["post-525375","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-supply-chain","category-sustainability"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.7 (Yoast SEO v26.7) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Tariff wars could add to UK construction woes, warns report | Construction News<\/title>\n<meta name=\"description\" content=\"Global tariff wars threaten to delay construction projects and erode contractor profits, a major business insurance company has warned. 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