Recent trade policy updates under President Donald J. Trump are introducing important changes to how tariffs are applied to steel, aluminum, and copper, materials that are foundational to the pipeline construction industry. Through an April 2 presidential proclamation and accompanying fact sheet, the administration has outlined a more tailored approach under Section 232 that aims to strengthen domestic manufacturing while refining how tariffs impact downstream products.
For APCA members, these changes and new tariffs on foreign products and materials are highly consequential. Pipeline contractors rely on a wide range of products that are deeply tied to global metals markets. The updated framework distinguishes between products made almost entirely of steel, aluminum, or copper and so-called “derivative products,” creating a more nuanced tariff structure that will directly influence pricing and procurement strategies.
Under the new policy, items made almost entirely of covered metals will continue to face a 50% tariff. However, for derivative products that are substantially composed of these materials, a flat 25% tariff will now apply to the full value of the product. At the same time, products containing 15% or less of these metals will no longer be subject to tariffs at all. For many components that incorporate smaller amounts of metal inputs, this threshold could provide meaningful relief and improve sourcing flexibility.
The policy also introduces two important carveouts that are especially relevant to APCA contractors. Certain metal-intensive industrial equipment will be subject to a reduced 15% tariff through 2027, an acknowledgment of the critical role these products play in infrastructure development. Additionally, products manufactured overseas but using American-produced steel, aluminum, or copper will face a lower 10% tariff, creating an incentive to incorporate U.S.-sourced materials into global supply chains.
For domestic manufacturers these distinctions matter.
“The updated framework could help level the playing field against foreign competitors benefiting from subsidized inputs, while also encouraging greater use of domestically produced metals,” APCA lobbyist Ben Brubeck, president and CEO of Government Affairs Solutions, said. “For contractors, a stronger domestic supply chain offers the promise of improved reliability and reduced exposure to global disruptions.”
At the same time, APCA members should carefully evaluate how these changes will play out in practice.
Recent analysis from Associated Builders and Contractors highlights the cost pressures already facing contractors. Since February 2020, construction input prices have increased by more than 48% overall, with key commodities construction machinery equipment (36.5%), iron and steel (65.9%), steel mill products (77%), and unprocessed energy materials (77.8%) experiencing remarkable inflation. While prices have moderated from peak levels and then spiked due to the recent surge in oil prices due to the Iran conflict, contractors continue to face elevated baseline costs and ongoing uncertainty.
A balanced tariff approach that advances domestic manufacturing goals while recognizing the operational realities of the construction industry might yield the best results. Predictable timelines, transparent classifications, and coordination with broader infrastructure policy will be key to ensuring that tariff changes strengthen—rather than further disrupt—the supply chains that power America’s economy.
Please share your tariff-related industry intelligence with the APCA government affairs team to help shape APCA’s advocacy efforts.
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