The new 25% and 10% tariffsimposed on steel and aluminum will likely have a significant impacton commercial real estate construction, specifically for high-riseand mid-rise buildings. With construction costs and land pricesalready at record highs, potential price increases have become aconcern for developers, and in a development-rich market like L.A.,there could be potential negative impacts. To find out more abouthow these tariffs might impact construction in L.A. market, we satdown with Carlos Serra, managing director atJLL, for an interview. What was your initial reaction to thetariffs on aluminum and steel?

Carlos Serra: Tariffs or import taxesare not new under the Trump administration. Last year, aroundApril, he imposed import taxes on Canadian lumber firms in responseto Canadian restrictions on U.S. imported dairy products. Thetariffs were up to 24% and the estimated impact was a 30% increasein lumber pricing year-over-year.

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.