Fuel prices and tariffs are things contractors are actually talking about over coffee, at the asphalt plant, and on the tailgate. This week's question comes from several AGC/VT members who have been asking variations of the same thing:
Q: Every time I turn on the news, somebody's talking about tariffs. Are they going to affect construction in Vermont?
A: Potentially, yes.
Tariffs are essentially taxes placed on imported goods. When those taxes increase, the cost of materials coming into the United States can increase as well.
For contractors, that could mean higher prices or longer lead times for items such as:
- Steel products
- Aluminum products
- Construction equipment
- Electrical components
- Mechanical equipment
- Building products and materials
Not every material is affected, and not every price increase is tariff-related, but contractors should expect continued market uncertainty as trade policies evolve.
Q: What about fuel? Is Washington doing anything that could impact diesel prices?
A: Fuel prices remain one of the biggest wildcards in construction.
While diesel costs are influenced by global markets, production levels, refinery capacity, and geopolitical events, federal policies can affect energy production, transportation costs, and supply chains.
The challenge for contractors is that even modest increases in diesel prices can have a ripple effect across an entire business. Fuel impacts:
- Trucking costs
- Aggregate hauling
- Paving operations
- Heavy equipment
- Material deliveries
- Employee travel
In contractor terms: when diesel goes up, almost everything else follows.
Q: What should contractors do right now?
A: Focus on what you can control.
Nobody on a Vermont jobsite gets to decide trade policy or global energy markets. But contractors can:
- Monitor supplier pricing closely
- Review escalation clauses in contracts
- Lock in major purchases when appropriate
- Communicate early with owners about pricing volatility
- Build contingencies into long-term planning
The contractors who navigate uncertainty best are usually the ones paying attention before the bill arrives.
Searching for the Shovel Bottom Line
Whether it's tariffs, fuel costs, supply chains, or material pricing, one thing remains true: uncertainty makes construction more difficult. Projects are built on planning, and planning becomes harder when prices move unexpectedly. AGC/VT will continue tracking federal policy discussions and providing members with practical updates that matter where the work actually gets done.
Got a question about Washington, transportation funding, workforce issues, taxes, tariffs, energy policy, or regulations?
Send it our way. We'll do our best to separate the politics from the practical and explain what it means on the jobsite.
And yes, Richard is still searching for his beloved shovel.
