This is an installment in a multi-part series.

Rising national material costs linked to new federal tariffs currently under review by the  U.S. Supreme Court and a tightening construction labor market are raising questions about how upcoming University of Iowa projects could be affected. 

According to Associated General Contractors of America, or AGCA, President Donald Trump’s administration’s recent tariffs have caused extreme price hikes in steel, aluminum, and lumber — core materials used in construction.

AGCA found in a November analysis that the producer price index, which tracks the change over time of the selling prices that domestic producers receive from their output, of aluminum mill products increased 26 percent from September 2024 and steel mill products increased by 12.4 percent in the same period. 

AGCA also conducted a 2025 survey with over a 1,000 nationwide respondents and found that 92 percent of construction firms reported having a hard time filling open positions, and 45 percent indicated labor shortages are causing project delays.

While large-scale UI projects like the north of $2 billion inpatient tower project and the $81.4 million IMU renovations were postponed earlier in the year due to federal funding cuts, the UI has not announced any projects postponed due to the tariffs enacted by the Trump administration.

Randy Clarahan, Iowa market executive for Mortenson, the Coralville-based general contractor hired for the IMU renovations, said although material costs are volatile and recent tariffs could cause prices to surge, Mortenson is seeing no significant price increases at this time.

“We are watching very closely things like steel,” he said. “74 percent of steel that is utilized during construction is imported. That has caused tariff exposure to potentially increase. The other possibility is aluminum, a little over half of which is imported.”

Clarahan cited the Mortenson Quarterly Cost Index, which tracks changes in nonresidential construction costs in selected U.S. cities for the third quarter of 2025, saying nonresidential construction costs in key cities like Chicago and Denver rose by 1.16 percent over the past quarter and 6.6 percent over the previous 12 months, numbers he noted as normal and in line with the direction of the construction market before the tariffs. 

Clarahan also said that approximately 40 percent of construction costs come from materials, half of which are imports. He said predicting construction costs is difficult enough without having to factor in tariffs.

“There’s so many factors relative to the uncertainty,” he said. “Material suppliers currently are not holding their price as long as they used to. They’re only holding their prices for a few weeks versus over a month or two, which adds a little more uncertainty to forecasting costs.”

Clarahan said if UI were to run into rises in construction costs due to either tariffs or a labor market shortage, Mortenson would recommend they premanufacture materials, which reduces labor needed on site, and substitute materials that surge in price, like steel with other elements like concrete.

While Clarahan said it is important to remain vigilant for market changes, he is excited about ongoing projects at the university.

“We’re happy to be a partner at the University of Iowa,” he said. “We’re excited about the Student Union and its 100th anniversary.”

Andy Roberts, the president of Central Iowa’s State Building Trades Council, a coalition of 16 trade unions representing over 15,000 skilled construction workers, said the subcontractors the council works with have seen a rise in material costs. 

“When it comes to tariffs on steel and manufactured components, critical building material is driving up,” he said. “When you see the price jump because of international trade decisions made far outside Iowa, that cost ultimately lands on project owners, taxpayers, and the skilled task force delivering these facilities.”

Roberts said that the council hosts one of the largest apprenticeship centers in Iowa, with over 400 apprentices actively working across its network.

“To be able to buy what we need to educate our apprentices down here from our local wholesale houses, being made from copper pipe, fittings, valves, welding rod, welding pipe, we’ve seen a substantial rise in the cost of what it costs to train our apprentices,” he said. 

Roberts said the council’s apprenticeship program is growing, but simply can’t train new workers fast enough to meet construction demand. 

Roberts said Iowa needs the federal government to ensure materials flow at reasonable prices, continued investment in apprenticeship programs, and for project owners to understand that the best way to weather economic pressures is to work with skilled laborers on construction projects to make sure their needs are met. 

Chris Brewer, public relations manager in the UI’s Office of Strategic Communication, sent an email to The Daily Iowan explaining how the tariffs are affecting the university. 

“The University of Iowa actively monitors market conditions and works with suppliers to minimize cost fluctuations, including the impact of tariffs,” he said.

Brewer said the UI’s Purchasing team has been working ahead of time with their usual suppliers to reduce or avoid the impact of tariffs as much as they can.

Although the UI, general contractors, and trade unions all interpret the immediate impacts of the Trump administration’s tariffs differently, all put emphasis on keeping a watchful eye to the cost effects of the tariffs.

“When you combine the rising material costs with an already stretched labor market, you create a perfect storm right there,” he said. “Contractors struggle to bid competitively, projects become harder to staff, and pressure on the existing workforce intensifies.”