Roofing contractors are facing a rapidly evolving economic landscape. In this episode of Roofing Contractor’s “Best of Success” podcast, Group Publisher Jill Bloom talks tariffs and labor issues with RC’s Legal Insights columnist Trent Cotney, head of the Construction practice group at Adams and Reese.

Legal Impacts of Tariffs on Roofing

Trent Cotney explains how rising tariffs on materials from Canada, Mexico, and China, combined with labor shortages and increasing costs, are creating significant challenges for contractors.

Cotney offers insight and analysis on the Trump administration’s motivation behind the 25% tariffs levied on March 4 against Mexico and Canada and the 10% increase on Chinese imports, which will directly impact the construction industry.

"Tariffs are an interesting subject because the Trump administration is using them primarily for negotiation purposes," Cotney explains. 

"When he first threatened Canadian and Mexican tariffs, it was because of border security and fentanyl. Now, we’re seeing a 25% tariff across the board for Canada and Mexico, and an additional 10% increase on China, bringing those tariffs to 20%."

Cotney warns that contractors relying on Canadian lumber, Mexican-manufactured goods, or Chinese solar panels should be prepared for rising costs.

"We've become heavily reliant on Canadian timber, and a lot of manufacturers have their base of operations in Mexico,” he explains. “With China, solar panels and fasteners are a big concern; Contractors need to have their finger on the pulse of price increases."

The discussion also touches on the ripple effects of these tariffs on labor. Due to shifting immigration policies, Cotney anticipates a "25% to 35% increase in labor rates." 

"There’s a chilling effect on foreign labor, with increased ICE raids and I-9 audits," he says. "This shortage is going to hit roofing, carpentry, and other building envelope trades the hardest."

Steel tariffs are another major concern. 

Despite these challenges, Cotney remains optimistic about the industry's resilience. 

"Backlog remains strong, and contractors are still busy,” he says. “But in times of uncertainty, focus on "There’s a 25% tariff on steel made outside the U.S., and while we do have domestic steel-making capability, we still rely on imports, especially for structural steel. Prices will likely rise," Cotney predicts.

“Keep to the fundamentals — bidding correctly, managing contracts, and ensuring you have price acceleration provisions in place."

Tune in and watch or listen to the full episode for more expert insights. Stay informed, stay ahead, and prepare your business for what’s next.