Recent tariffs on imported goods have added a layer of complexity to ongoing and future construction efforts.
However, according to Kevin Campbell, senior vice president of operations, the university has avoided increased construction costs through strategic timing and planning.
“For the most part, we’ve been able to avoid the majority of the chaos as it relates to major construction,” Campbell said. “There are some things that are not as urgent that we were planning on doing this summer, which we are pausing at the moment and waiting for things to settle down, to see where things land before we make some additional purchases.”
Construction prices have risen since the COVID-19 pandemic, and Campbell said much of that is due to supply chain issues. The indirect effect on students, he said, would most likely be seen in scaled-back maintenance, meaning that if prices continue to rise, some aesthetic or noncritical upgrades might be delayed.
Dr. Benjamin Peterson, a political science professor, explained that under federal law, the president can impose tariffs in specific situations. Article I of the Constitution delegates the power to regulate foreign commerce to Congress. Although the executive branch does not typically impose tariffs, Congress has passed legislation granting the president authority to do so in cases of economic emergency or national security.
The president also has the authority to declare an economic emergency. The National Emergencies Act of 1976 allows for the declaration of national emergencies and activation of related powers.
The Trump administration’s rationale is that the nation is in an ongoing trade deficit, meaning the U.S. is currently importing more goods from other countries than it is exporting to them.
However, a couple of different arguments support the increased tariffs. One is that increased tariffs will potentially incentivize companies to build and manufacture in America.
When goods are produced in the United States, it can strengthen the economy by increasing job opportunities. It could also prevent a disruption in supply chains, such as the one seen during the pandemic.
According to a White House fact sheet, “Large and persistent annual U.S. goods trade deficits have led to the hollowing out of our manufacturing base; resulted in a lack of incentive to increase advanced domestic manufacturing capacity; undermined critical supply chains; and rendered our defense-industrial base dependent on foreign adversaries.”
The other proposed rationale for imposing tariffs is to encourage other countries to negotiate and to get fairer terms of trade. The White House fact sheet says these tariffs are meant to address the injustices of global trade and to encourage other countries to follow the trade golden rule: “Treat us like we treat you.”
Alongside the imposed tariffs, Trump signed an executive order on April 15 to launch an investigation “into the national security risks posed by U.S. reliance on imported processed critical minerals and their derivative products.”
This investigation will assess vulnerable areas in supply chains and aims to reduce dependence on foreign suppliers.
The rise in tariffs has caused some concern throughout the nation and is affecting construction costs. At ACU, however, the impact has been limited so far.
“And so we’re just not as impacted because we’re pausing and letting things hopefully settle down a little bit,” Campbell said. “And if in a couple of months from now things haven’t settled down, then unfortunately we’ll have to be paying more for our parts and equipment than what we were previously.”
