Tariff Uncertainty Clouds LA Wildfire Rebuild Efforts

Builders across Los Angeles County are grappling with rising costs and economic uncertainty as they work to rebuild tens of thousands of homes destroyed by wildfires.

Trade policies instituted by President Donald Trump, especially new tariffs on imported construction materials, are making it difficult for developers to budget and plan effectively, the Los Angeles Times reported.

General contractor Cory Singer, overseeing 10 rebuilds in Pacific Palisades, said many of his suppliers are warning of imminent price hikes — some as much as 10 percent — on key materials such as tile, windows and lighting fixtures.

As a result, he’s advising homeowners to prepare for higher expenses and has begun factoring a 5 percent to 10 percent “market volatility” contingency into budgets.

The uncertainty stems from tariffs as high as 145 percent on Chinese-made goods, many of which are essential for construction.

Builders fear more increases may be on the way, creating pressure to purchase and stockpile materials now. Some homeowners are even considering installing storage containers on-site to house supplies purchased in advance.

The stakes are high: the January wildfires destroyed an estimated 16,000 structures, prompting what will be one of Los Angeles’ largest rebuilding efforts in decades.

Yet beyond tariffs, builders also cite labor shortages, tight permitting processes, and restrictive site access as critical challenges.

Bryan Wong, CEO of San Gabriel Valley Habitat for Humanity, expressed concern about the unpredictability of trade policy. His nonprofit is helping low-income families rebuild and has already secured the first reconstruction permit in Altadena.

“It’s scaring the crap out of me,” Wong told the Times, pointing to the volatility of U.S. trade relations and their effect on costs.

The construction industry was optimistic at the start of the year, bolstered by lower mortgage rates and strong consumer spending.

But economist Anirban Basu of Associated Builders and Contractors said that mood has soured. Tariffs, immigration enforcement and global economic instability have shaken confidence and delayed investment decisions.

Industrial real estate is also feeling the impact.

Alon Kraft, COO of Dedeaux Properties, said tariffs are prompting hesitation among tenants and investors. “We’re expecting a pause in a lot of major decision-making,” he told the newspaper.

While tariffs have not yet derailed rebuilding efforts, many in the industry are bracing for more disruptions. “We’re not seeing so much pain right now,” added builder Andrew Slocum. “We’re worried about what could happen.”

— Dana Bartholomew