Trump administration and the significant upheaval to the construction industry
Trump administration and the significant upheaval to the construction industry

Trump administration and the significant upheaval to the construction industry

Impact on the European Market.
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RE+D magazine
12.02.2025

The construction industry anticipates significant changes at both the national and international levels as a result of the new policies under the Trump administration. These changes are expected to impact permits, materials, labor, and project funding, with potential ramifications for the European market as well.

Reevaluation of Infrastructure Funding

In 2021, the Infrastructure Investment and Jobs Act (IIJA), valued at $1.2 trillion, was approved with the aim of upgrading the infrastructure of the United States. Following the change in administration, there is a possibility that these funds may be reassessed or redistributed. According to the Brookings Institution, the new administration will manage approximately $294 billion, of which $87.2 billion will be allocated to competitive grants. This signifies that the new leadership will have considerable influence over the selection of projects that will move forward.

Focus on Traditional Infrastructure

The Trump administration is expected to prioritize traditional infrastructure projects, such as roads, bridges, and ports, potentially reducing funding for initiatives related to climate change or green energy. This shift could have implications for companies involved in sustainable development projects, both in the United States and Europe, where many companies collaborate on transatlantic projects.

Impact on Trade Relations and Construction Materials

The trade policies of the new administration, such as the imposition of tariffs on imported materials, could increase the cost of construction projects. For instance, tariffs on materials such as wood or steel could affect the prices of real estate and construction in Europe, given the global nature of this market.

Changes in Environmental Regulations

The Trump administration has expressed an intention to relax certain environmental regulations in order to expedite project development. While this may reduce approval times, it could raise concerns regarding the environmental sustainability of projects, an issue that is particularly important for European companies adhering to strict standards.

The policies of the Trump administration are expected to bring significant changes to the construction sector, with effects that will be felt beyond the borders of the United States. European companies should closely monitor these developments, assessing how these changes may impact their own operations and strategies.
Source: Construction Dive