President Donald Trump’s new tariff hikes and trade agreements have been put into motion on more than 90 countries, increasing average tariff rates to their highest point since the Great Depression.

Among other political goals, the president is using tariffs as a way to encourage jobs and manufacturing to return to the United States. The changes have reverberated through the global economy and impacted the roofing industry in the form of price increases and slow job growth.

Under the new policy, imports from countries will face a universal 10% tariff. Imports from 40 countries with trade deficits with the U.S. will face higher reciprocal tariffs of 15%, while 26 other countries will face higher rates.

If these tariffs sound familiar, it’s because they were scheduled to take effect Aug. 1 but, per an executive order from Trump, took effect on Aug. 7. New tariffs have been announced as well, including increases on India and an agreement with the European Nation.

As a result, the average tax on imported goods is 18%, which is the highest it’s been since 1933, according to an analysis by the Yale Budget Lab. As importers seek other sources, that is expected to fall to 17.3% over time, though that is still the highest rate since 1935.

Below are updates on the status of the new and previously announced tariffs.

A Tariff War on Drugs

Trump announced increases on some imports from Canada, going from 25% to 35%, saying it’s in response to the country not doing more to tamp down on drugs like fentanyl coming across the northern border.

A 25% tariff on certain Mexican imports has been extended for 90 days, also put in place due to drugs crossing the border.

Metal-based Tariffs Remain

Relief on metal roofing products did not materialize in the latest trade deals. The 50% tariffs on all steel and aluminum are still in place.

The 50% tariff on copper imports announced on July 8 took effect Aug. 1.

Russian Oil Tariffs

Due to the ongoing conflict between Russia and Ukraine, the White House announced tariff increases for countries directly or indirectly importing oil from Russia.

An executive order issued Aug. 6 said the U.S. will increase a 25% tariff on goods from India to 50% in response to the country importing oil from Russia. The 50% rate takes effect Aug. 27.

U.S. and E.U. Trade Agreement

The U.S. and the European Union reached an agreement that includes a 15% tariff on goods imported from the E.U., lower than the anticipated 30%.

U.S.-China Deadline Looms

The short-term arrangements between China and the U.S. are still in place as negotiations continue. A 20% broad tariff on all Chinese imports went into effect Feb. 4 and was increased in March.

A 125% tariff on China was lowered to 10% for 90 days on May 12. The 90-day pause is set to expire Aug. 12.

Foreign or Domestic Revenue?

Trump celebrated the policies on Truth Social, saying on Aug. 8: “Tariffs are having a huge positive impact on the Stock Market. Almost every day, new records are set. In addition, Hundreds of Billions of Dollars are pouring into our Country’s coffers.”

The U.S. Treasury Department collected nearly $30 billion in tariff revenue last month, a 242% jump in tariff revenue from last year.

Though the administration says this is revenue coming in from foreign countries, the revenue collected by the government comes from American companies paying the tariff taxes on the goods and products imported from those countries.

Yale’s researchers project that between 2026 and 2035, tariffs will raise $2.7 trillion. This falls to $2.3 trillion when economic feedback effects are considered.

According to the Associated Press, the stock market had a mixed finish on Aug. 7 when the tariffs took effect and had little to no effect on the global market. The S&P dropped 0.1% while the Nasdaq composite rose 0.3% to a record.

The Impact of Tariffs

Roofing contractors are frequently adjusting their quotes as supply costs fluctuate weekly. They may also run into further delays or canceled jobs as new construction slows down and material shortages persist.

Nonresidential repair and reroofing may improve in this environment, though nonresidential construction spending decreased by 0.1% in June, according to the latest Bureau of Labor Statistics data.

“Recent declines would be worse if not for ongoing increases in public nonresidential spending, which has risen 5.1% over the past year, significantly outperforming the 4.0% annual decline in private nonresidential activity,” said Associated Builders and Contractors Chief Economist Anirban Basu in a written statement.

Suppliers may have to increase prices to adjust for tariff hikes. For instance, building supplier BlueLinx said in its Q2 2025 earnings call that it would pass on tariff taxes to customers via price increases.

Due to the tariffs, U.S. manufacturing output has expanded by 2%. However, as the Yale Budget Lab report analysis shows, the gains are “crowded out” by other sectors declining, most notably construction. The construction output contracts alone saw a 3.5% decline for the long-run real U.S. GDP.

In the short run, the Yale analysis says household purchasing power will be reduced by an average of $2,400 in 2025, settling to $2,000 per household.

The full effect of the tariffs has yet to play out due to the Trump administration delaying them, but so far, fears of a recession have yet to manifest. However, the indications of one approaching are there.

As previously reported, the labor market is not as strong as reports initially indicated, with the latest Bureau of Labor Statistics report showing weak job growth in most industries last month. In construction, ABC described job growth as “anemic,” increasing by 96,000 jobs on a year-over-year basis, or 1.2%.

“The construction industry has added just 7,000 jobs over the past four months,” said Basu. “Industrywide employment is up only 1.2% over the past year, a lackluster pace of growth that historically is seen during and immediately following recessions.”

Taking Action

Contractors are advised to continue purchasing and stocking essential building materials before further price hikes occur. Price escalation clauses, or even tariff-specific clauses, provide some relief as material prices change or certain materials become harder to obtain.

Contractors and suppliers alike are encouraged to consider approved substitutes or alternative products that aren’t as affected by the tariff increases.