---

Tariffs another risk for construction sector

Lawyers at RDJ have highlighted the potential impact on the construction sector of a trade war sparked by US President Donald Trump’s tariffs announcement last week. 

Partner Shane O’Connor says that the EU’s reaction in “almost certainly, if not immediately” imposing tariffs on US products will affect construction projects being delivered in Ireland. 

In a note on the firm’s website. O’Connor points out that, while there is no publicly available breakdown of what percentage of imported construction goods comes from the US, the figure for the broader category of non-agricultural materials from the US was close to 18% last year. 

Supply chains 

He adds that companies that import construction materials are likely to review their supply chains in a bid to identify suppliers that escape the tariffs. 

“In circumstances where engaging alternative suppliers is not a viable option, then it would seem that an increased level of compliance and cost uncertainty is on the horizon. 

“Those increased costs will have to land somewhere and, inevitably, it will be contractors and employers that will bear the brunt in dealing with the fallout from the change in trade policies,” O’Connor states. 

‘Unexpected consequences’ 

He highlights potential legal discussions about whether tariffs fall within the remit of ‘customs or excise duties’ under the rules that govern public-works contracts. 

“In the grand scheme of pricing construction projects the imposition of tariffs is but another risk to be factored in,” O’Connor says. 

“The impending global trade disruption may have unexpected monetary consequences for even the most straightforward of builds,” the RDJ lawyer concludes.