Building contractors are already hiking prices as much as 20% to offset potential tariffs, a move that could also raise prices of new condos and homes, according to the CEO of developer Related Group.
President Donald Trump has imposed 25% tariffs on certain goods from Canada and Mexico, including steel and aluminum, and is expected to follow through on broader tariffs starting on April 2. Even before those wider levies take effect, uncertainty over tariffs and inflation is causing many contractors to hike real estate project costs.
Related Group CEO Jon Paul Pérez said contractors bidding on seven projects that Related has in the works are raising prices.
“We’re seeing [subcontractors] throw an additional cushion into their numbers anticipating tariffs,” Pérez told CNBC during a live Inside Wealth conversation. “It could be as much as 20%, depending on what material they’re getting from another country.”
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