Raleigh developers brace for potential effects of looming tariffs on foreign aluminum, steel

RALEIGH, N,C, (WTVD) -- The 25% tariff on foreign steel and aluminum is set to take effect March 12. Some believe it will hit the new construction commercial market particularly hard since both materials are heavily used.

"There is a lot going up right now, but I do think it's going to have an impact on future projects," said Realtor Gretchen Coley. "Raleigh is growing. We have this fabulous economy here that is just continuing to bring people and businesses into our market. I think from a commercial standpoint, a lot of those buildings are built with steel, aluminum products, even in homebuilding, we're seeing a lot of fasteners, nails, vacs, those kinds of systems that that utilize aluminum and steel."

According to the latest Downtown Raleigh Alliance quarterly report, there is $3.8 billion worth of proposed or planned developments coming to the City of Oaks.

Around 2008, during the housing market bubble, some projects in downtown Raleigh were halted altogether because of the economy.

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"I don't know if the tariffs are going to have that kind of constraint on our market," said Coley. "I think you are going to see those costs get passed on to the end user, to the business, to the homebuyer, to the developer, to the builder."

ABC11 reached out to the City of Raleigh to see whether any of its projects, such as a New Bern Avenue corridor, would be affected. A spokesperson would only say city leaders are monitoring market conditions.