QUICK READ: Key Takeaways

• Senate Challenges Presidential Trade Powers: In a rare bipartisan move, lawmakers voted 59–41 to overturn tariffs imposed under national emergency powers, signaling a renewed interest in congressional oversight of trade policy.
• Tariffs Strain Construction and Manufacturing: Rising costs for steel, aluminum, and copper have led to delayed or canceled projects, with industry leaders warning that continued price hikes could stall growth.
• Economic and Political Stakes Remain High: Although a veto is expected, the Senate’s vote marks a turning point in the debate over tariffs—highlighting concerns about inflation, supply chains, and U.S. competitiveness.

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The U.S. Senate accomplished on Oct. 30 what was once considered by many impossible: it voted to overturn President Donald Trump’s use of national-emergency powers to impose sweeping tariffs.

The rare bipartisan rebuke exposed deep divisions over trade authority and Congress’s constitutional role as keeper of the purse. It also underscored the economic strain of rising material costs that have disrupted U.S. construction and manufacturing since the first tariff orders took effect.

The 59-41 vote approved S.J.Res. 88, a resolution terminating the emergency declaration Trump used in March to justify tariffs of up to 50% on imported steel, aluminum and copper under the International Emergency Economic Powers Act. 

Fourteen Republicans joined Democrats in backing the measure, which is expected to face a veto. Lawmakers described the move as an attempt to restore congressional oversight after months of price volatility affecting key construction inputs.

“American families are being squeezed by prices going up and up and up,” said Sen. Ron Wyden (D-Ore.), who led debate on the resolution, according to a statement released by his office. “Congress can vote to repeal Donald Trump’s trade taxes and stop taking money out of Americans’ pockets.” 

Sen. Mitch McConnell (R-Ky.), the former majority leader, added, “Tariffs make both building and buying in America more expensive. The economic harms of trade wars are not the exception to history, but the rule,” according to reporting by The Washington Post. 

His fellow Kentuckian, Sen. Rand Paul (R), was more plainspoken, saying ahead of the vote that “tariffs are taxes; they drive up the costs for things Americans buy every day and make it harder for American businesses to thrive and create more jobs.”

An Immediate and Lingering Effect

The tariffs on steel and aluminum—25% in March, rising to 50% by June 4 and 50% on copper by Aug. 1—are already reflected in federal producer-price data and construction bids. The Associated General Contractors of America said in September that the industry is nearing a breaking point.

“There is a limit to how many price increases the market can absorb before owners put projects on hold,” Associated General Contractors CEO Jeffrey D. Shoaf said in a Sept. 10 statement, which reported that 43% of contractors cited delayed or canceled projects due to higher material costs tied to tariff actions.

While AGC has not taken a formal position on this latest Senate action, it says it continues to press both Congress and the White House for clarity on tariff policy. 

“We have been in near-constant communication with the administration and Congress since even before the start of the year about the need for clarity and certainty on tariff rates,” Brian Turmail, AGC vice president of public affairs and workforce, said in an email. He added that the group was encouraged by the administration’s “speed in resolving many of the trade disputes,” including what he described as “a trade truce with China.”

Most Republicans continued to support the president despite mounting data showing tariffs’ drag on economic growth. Sen. Mike Crapo (R-Idaho) told the Associated Press that tariffs “should be more targeted to avoid harm to Americans,” but argued that repeal “is counterproductive to helping American families and businesses of all sizes.”

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Trade associations and business groups have warned from the outset about the negative impact of unilateral tariffs on the construction industry. 

On March 11—the day before the administration levied a 25% tariff on steel and aluminum imports—the U.S. Chamber of Commerce told the Office of the U.S. Trade Representative that “Americans literally pay these import taxes.” In April, the National Association of Manufacturers said the 2025 tariffs “threaten investment, jobs, supply chains and, in turn, America’s ability to outcompete other nations.”

In practical terms, the Senate’s action provides limited immediate relief but represents a potential turning point. If Congress can reassert its trade-approval authority, it could reduce the policy uncertainty that forces firms to include escalation clauses or contingency allowances in bids. 

Economists note that U.S. producers meet roughly 84% of domestic demand for construction metals, meaning the remaining 16% must still be imported—precisely the share hit hardest by tariffs.

A Boston Federal Reserve estimate in October found that the 2025 tariffs are adding about 0.75 percentage points to core inflation.

Sen. Chuck Grassley (R-Iowa), a former Finance Committee chair and the chamber’s most senior Republican, helped craft the bipartisan review framework underlying the Oct. 30 resolution. 

In early April, he and Sen. Maria Cantwell (D-Wash.) introduced the Trade Review Act of 2025, which would require Congress to approve new presidential tariffs within 60 days. Grassley said Republicans were responding to concerns from U.S. businesses about “higher costs passed straight down the supply chain." Cantwell said the bill “shows the anxiety that people have when tariffs are used as the only tool,” according to the Congressional Record.

Even if Trump vetoes the measure, the Senate vote is a sign of growing concern inside his party that the tariff regime is hurting domestic builders as much as foreign competitors. For the construction industry, it also serves as the clearest indicator yet that Washington’s trade fight has become an economic variable in every major project estimate.

ENR has sought additional comment from senators involved in the Oct. 30 action, but had not received responses by press time.