How may US tariffs influence the UK building industry?

Recently, US tariffs have stressed the world economy. It especially connects to the building industry, which is strongly dependent on the cost of raw materials. But what is the real influence of the US tariffs on the building industry? Also, what will the UK building industry in the future?

The main source: US tariff uncertainty threatens UK construction growth

The current situation in the UK building market

It is important to note that the US-UK building trade is low. So tariffs will not have a considerable impact. However, they will converge on the global economy. The Construction Products Association has published its 2025 Spring Forecasts based on the exclusion of the potential impacts of US tariffs. According to its forecast, 1% growth is expected in 2025, and 3% growth is expected in 2026.

The reasons why the Association has corrected its plans are slightly higher than expected inflation, a slow start to activity on the market this year, and an increase in the cost of the UK social package. All of these increase the price of final builds.

How will tariffs influence the UK building industry?

According to the Construction Products Association, US tariffs will not have a considerable consequence on the UK building industry. It`s because most building materials are imported from the EU. The only case when tariffs may have a great impact on the UK building industry is the beginning of a global recession and economic crisis.

CPA head of construction research Rebecca Larkin said: “After a difficult couple of years, the fundamentals still point towards a return to growth in construction activity in 2025 and 2026. A gradual improvement in UK economic activity and the government’s commitment to capital expenditure should boost demand. At the same time, the government’s easing of planning for house building, infrastructure, data centers, gigafactories, schools, hospitals, and prisons should also help delivery in the medium-term. The big risk is the potential impact of the US tariff disruptions in April. There is likely to be only a limited direct impact of tariffs on construction as three-quarters of construction products used in UK construction are sourced domestically. Even when the UK imports construction products, two-thirds are from the EU.  However, this could be overshadowed by any effects on global and UK economic growth and the increase in uncertainty.”

Fencyx, as one of the leaders of the UK building industry, confirms that the US tariff policy will not have a great impact on our work. Our subcontractors are located in the EU, the Middle East, and North Africa. So, we do not depend on US tariff policy so strong.

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