President Donald Trump signed an executive order on June 2 adjusting tariffs on steel, aluminum, and copper imports — changes that could filter down to South Florida’s construction sector, which has been squeezed by material costs for more than a year. The adjustments offer targeted relief on certain categories of equipment, though raw-metal rates remain at historically high levels.

What Changed

The order lowers tariffs on agricultural equipment — including combines and harvesters — and HVAC systems to 15% from 25%. It also expands the category of industrial equipment subject to a 15% rate to include mobile machinery like bulldozers and forklifts, provided they’re imported from countries that have a trade deal with the United States. Countries that use at least 85% melted and poured or smelted and cast steel or aluminum by weight could qualify for an even lower 10% rate, a move designed to encourage the use of American-made metals in the manufacturing process.

The changes are temporary and set to expire at the end of 2027. Trump said the adjustments “appropriately account for these products’ roles in productive economic activity in the United States.”

Context: A Year of Escalation

The tariffs have been a moving target since Trump’s first term. Originally imposed in 2018 under Section 232 of the Trade Expansion Act — which allows tariffs on imports deemed a threat to national security — they were renewed in April 2025. In June 2025, Trump hiked steel and aluminum tariffs to a punishing 50%. In April 2026, a two-tier system took effect: 50% for raw metals like steel coils and aluminum sheet, and 25% for derivative products made “substantially” of those metals.

For South Florida developers — already dealing with rising insurance premiums, labor shortages, and post-hurricane rebuilding costs — the tariff roller coaster has complicated budgeting on condo towers, warehouse builds, and infrastructure projects across Miami-Dade and Broward. HVAC systems, now lowered to 15%, are a significant cost item in the region’s climate-driven construction market, where air conditioning is not optional. The expansion of the 15% rate to include bulldozers and forklifts could also trim equipment costs for the region’s active construction sector.

Political Timing Questions

Barry Appleton, co-director of New York Law School’s Center for International Law, questioned the motivation: “Farm bankruptcies are soaring, farm sentiment is declining, and Republican senators are openly warning their party is heading toward midterm losses in key agricultural states. This proclamation is the White House’s response: throw the farm belt a bone before voters go to the polls.”

Whether South Florida’s builders see tangible savings will depend on how quickly the adjusted rates translate into lower prices from suppliers — and whether the temporary nature of the cuts gives developers enough confidence to adjust budgets on multi-year projects. Business of Miami will continue following tariff developments and their local impact.

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