L.A. Developers Brace for New Tariffs

The new 25% and 10% tariffs imposed on steel and aluminum will likely have a significant impact on commercial real estate construction, specifically for high-rise and mid-rise buildings. With construction costs and land prices already at record highs, potential price increases have become a concern for developers, and in a development-rich market like L.A., there could be potential negative impacts. To find out more about how these tariffs might impact construction in L.A. market, we sat down with Carlos Serra, managing director at JLL, for an interview.

GlobeSt.com: What was your initial reaction to the tariffs on aluminum and steel?

Carlos Serra: Tariffs or import taxes are not new under the Trump administration. Last year, around April, he imposed import taxes on Canadian lumber firms in response to Canadian restrictions on U.S. imported dairy products. The tariffs were up to 24% and the estimated impact was a 30% increase in lumber pricing year-over-year.