How Steel Tariffs Are Reshaping PEMB Project Costs in 2026 — and What General Contractors Can Do About It
Tariffs are having a dramatic effect on nearly all areas of the U.S. economy, including the steel building industry. Beginning during the first Trump administration, the impact of steel tariffs has loomed over the construction field ever since. These disruptions have brought renewed attention to Section 232, under which the president has enacted his recent tariffs.
What Is Section 232?
Section 232 is part of the Trade Expansion Act, passed in 1962 and signed into law by President John F. Kennedy. This law was intended to boost U.S. trade with other countries, specifically those in the European Economic Community. Among its other provisions, it gives the president authority to reduce tariffs by up to 50 percent to stimulate international commerce. Section 232 was included as a safeguard to allow action in the opposite direction if necessary; it empowers the president to restrict imports that are deemed threatening to national security.
How is Section 232 Triggered?
A government agency head or any “interested party” may request the Commerce Department to investigate the national security impact of a particular import. The Commerce Department will then begin an investigation, notifying the Defense Department of its actions. The resulting report is delivered to the president, who may then initiate an action based on his or her authority under Section 232.
How Have Section 232 Tariffs Affected Steel Imports?
In 2017, the U.S. Commerce Department conducted investigations on seven commonly imported items to determine their impact on national security. It concluded that six of the seven, including imported steel and aluminum, posed a national security threat.
The Trump administration responded in 2018 by imposing a 25% tariff on imported steel articles, exempting those from Canada and Mexico. In later adjustments, several other countries were also exempted.
In 2025, President Trump removed most country exemptions and later increased steel tariffs to 50%. Tariffs on steel products from the United Kingdom remained at 25%. He also increased the number of steel derivative products covered by the tariffs.
How Did Steel Tariffs Change in 2026?
On April 6, 2026, President Trump issued a proclamation updating and clarifying U.S. tariff policy on various metal items. Among its terms:
- Imported articles made entirely or mostly of steel will continue to pay a 50% tariff.
- “Derivative articles substantially made of steel” will pay 25%.
- Some industrial equipment and electrical grid equipment will pay 15%.
- Imported products made of American steel will pay 10%.
- Imported items with steel composition of 15% or less will pay no tariff.
How Have Steel Tariffs Affected the PEMB Industry?
As intended, the tariffs have strengthened the domestic steel production industry. Tariffs caused the price of imported steel to rise dramatically. In response, builders have turned to domestic producers, which raised their prices accordingly—at least 16 percent in 2025 alone.
This has in turn increased the cost of constructing steel buildings. Steel columns, beams, struts, roof systems, and wall cladding all became more expensive. In addition, the many secondary components made of steel or aluminum also saw price hikes.
Steel and aluminum components for pre-engineered metal buildings have risen sharply since 2020.
Unintended Consequences: Supply Disruptions and Delays
As domestic steel producers struggled to meet the increased demand, shortages and supply chain disruptions have arisen. These developments have forced builders to reassess construction timelines as well as prices.
How Can Contractors and Project Owners Mitigate the Impact of Steel Tariffs?
Smart builders can take several steps to reduce the negative impact of steel tariffs—for the immediate future and the long term.
Diversify sources. The particular types of steel required for various PEMB components may be available from a variety of sources. Builders should compile lists of possible suppliers, including domestic as well as foreign sources, to provide options in the event of price hikes or shortages.
Lock-in prices early. Getting suppliers to commit to specific price figures can protect against surprises in a volatile market.
Insert contingency clauses into contracts. Builders shouldn’t be expected to bear the brunt of price hikes that occur after agreements are signed. Contracts should include tariff-specific escalation provisions to protect against unforeseen jumps in material prices.
Economize with design assist. This is a growing trend in the industry because it’s proven to be effective. The people conducting the work on the ground can usually offer cost-saving advice before construction begins. By bringing contractors in during the design phase, builders can avoid potential waste and needless expenses.
FSE: Stability in the Midst of Change
Project owners need to know they won’t be ambushed by sudden disruptions—either in construction schedules or materials pricing. At Fleming Steel Erectors, we provide the stability and security our clients deserve. That’s just one reason why we have a 90-percent repeat business rate.
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