UK Construction Industry Pay Review Season: Essential Salary Insights for 2025
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15 April 2025 | By Atkins Search
As Trump Tariffs roll out, UK construction braces for rising costs and job concerns. UK construction careers and firms could soon face the fallout from new US trade policies, as the UK government considers retaliatory tariffs on American construction materials following President Donald Trump’s announcement of a 10% import tax.
The move has sent ripples through the construction industry, with the share prices of major construction companies taking a notable hit on Friday 4th April. In response to the Trump tariffs, the Department for Business and Trade published a provisional list outlining US-sourced building products that could be subjected to tariffs.
The list includes:
- Bricks
- Ceramic sanitaryware (including sinks and toilets)
- Steel products
- Glass
- Pipes
- Fused silica
These goods are commonly used across various construction roles, impacting not only procurement strategies but also construction job stability and ongoing project costs.
How Trump Tariffs Are Disrupting the UK Construction Sector
Business Secretary Jonathan Reynolds has launched a four-week consultation, encouraging input from construction companies and supply chain professionals.
Reynolds has stated “The best interests of British business has shaped our approach throughout as we prepare for all scenarios”, emphasising the importance of the construction sector to speak up, share their views and shape how the Trump tariffs will affect daily operations.
This consultation provides an opportunity for businesses in the construction, consultancy, property and engineering sectors to influence policy that could directly affect procurement, project planning, and ultimately, construction career paths.
Which US Construction Materials Face Retaliatory Tariffs?
Investor confidence was shaken across the UK construction sector, with the FTSE100 dipping by 1.65%.
- Balfour Beatty: down 2.4% by mid-morning; a 5.19% decline over the week
- Keller: dropped 1.58%, largely due to its US operations
- Morgan Sindall: share price fell by 1.8%
- Costain: decreased by 3.17%
- Kier: held steady
- Berkeley Group and Redrow: showed modest gains
Travis Perkins, a major supplier of construction materials, which had seen a steep fall of over 13% earlier in the week, began recovering with a 1.66% increase later on in the week.
Industry Voices on the Long-Term Impact of Trump Tariffs
Gareth Belsham, Director at Bloom Building Consultancy, said the tariffs’ direct impact on the UK construction industry would be limited, given the low volume of exports to the US. However, he noted their significant influence on investor sentiment.
James Hawksworth, Partner at RSM UK, stressed the importance of supply chain transparency for construction firms navigating uncertain cost pressures.
Hawksworth advised companies to ensure they have an “in-depth understanding of their supply chain” so they can try to work out where costs might increase.
JCB Expands in Texas as Strategic Response to US Trade Policy
In the US, equipment giant JCB revealed plans to double the size of a new factory under development in San Antonio, Texas, as a strategic response to the Trump tariff implications.
originally planned a 500,000 square foot facility in San Antonio. That plan has now been revised to a one million square foot plant, with a total investment of $500 million.
JCB CEO Graeme Macdonald stated that, in the short term, the introduction of tariffs will significantly affect the business. “However, in the medium term, our planned factory in San Antonio will help to mitigate the impact. We are thankful that the tariff is only 10%, and we can only hope that the UK government will conclude negotiations on a trade deal in the coming days and weeks,” he concluded.
We’re here to help you steer your construction career through the impact of Trump Tariffs. Contact us today.
Frequently Asked Questions (FAQs)
How might US import tariffs affect careers in construction?
The introduction of US tariffs could have a knock-on effect on careers in construction across the UK. Higher import costs for key building materials may result in delays or reductions in construction projects. This can impact job creation and availability in skilled trades, site management, and supply chain roles throughout the industry.
Which construction materials are likely to be affected by UK retaliatory tariffs?
The UK government has indicated that potential tariffs may apply to a range of US construction products, including bricks, steel, glass, ceramic sanitaryware (such as sinks and toilets), pipes, and fused silica. These materials are widely used in both residential and commercial building work.
What actions can construction firms take to mitigate the impact of rising material costs?
Construction companies are advised to review their supply chains thoroughly and explore alternative suppliers, including UK-based or tariff-free sources. Businesses should also take part in the government’s consultation to ensure their operational needs and challenges are represented in future trade decisions.
Will construction costs rise in the UK if tariffs are introduced?
Yes, the imposition of tariffs is likely to raise the cost of imported materials, which could lead to increased project costs. This may result in slower delivery of new builds, refurbishment works, and infrastructure projects, affecting timelines and profit margins across the sector.
Are housebuilders affected by the recent market reaction?
While several construction firms saw declines in their share prices, housebuilders such as Berkeley Group and Redrow experienced modest gains. However, broader market uncertainty and cost pressures may still influence future investment and development activity in the housing sector.
How do trade tariffs impact investment in the construction industry?
Trade tariffs contribute to economic uncertainty, making investors and developers more cautious. This can result in a slowdown in capital project approvals, which in turn affects construction output, job growth, and opportunities for advancement within the industry.
What is the UK government doing to support the construction sector?
The Department for Business and Trade has launched a four-week consultation, encouraging construction firms and stakeholders to provide input on the potential effects of US tariffs. This is intended to help inform a measured UK response and ensure that policy decisions reflect the realities faced by the industry.
