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L.A. Developers Brace for New Tariffs

The new tariffs on steel and aluminum will likely increase already high construction costs on high- and mid-rise development.

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.

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Kelsi Maree Borland

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 GlobeSt.com 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.

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