New Tariffs and Their Ripple Effects

On February 1, 2025, President Trump announced new tariffs on imports from Canada, Mexico, and China under the International Emergency Economic Powers Act (IEEPA). While the stated purpose is to address border security and drug trafficking concerns, the impact on industries dependent on imported goods—especially electrical construction—is immediate and far-reaching.

Key imports such as steel, copper wiring, electrical panels, and transformers now face higher costs due to tariffs. As of February 4, 2025, tariffs include:

• 25% tariff on most Canadian and Mexican imports
• 10% tariff on Canadian energy products
• 10% tariff on all imports from China

In response, Canada has already announced counter-tariffs of 25% on U.S. goods, and China has retaliated with export restrictions on critical minerals like tungsten and tellurium, which are vital for both industrial and energy infrastructure.

What This Means for Electrical Contractors

The electrical and construction industry may face several immediate challenges:

• Increased Material Costs: Prices for wiring, transformers, and panels will rise.
• Supply Chain Delays: Retaliatory measures could slow delivery of essential components.
• Contract Pressures: Fixed-price projects without escalation clauses could strain profit margins.
• Shift to Domestic Suppliers: Contractors may turn to U.S. manufacturers, but high demand may drive costs even further.

For contractors, developers, and project managers, this means planning, flexibility, and training will be essential to stay competitive.

Connecting Tariffs to Workplace Safety

1. Equipment Quality and Sourcing
   When materials become expensive, some companies may seek lower-cost alternatives. Cutting corners on wiring, panels, or protective gear can create hidden hazards. Safety training ensures workers know how to identify substandard equipment and raise concerns before it leads to injury.
2. Extended Project Timelines
   Supply chain disruptions often lead to longer projects. Fatigue, rushing to meet deadlines, or working with unfamiliar materials can increase risk on the job site. Safety training reinforces the importance of hazard awareness—even under time pressure.
3. Shifting Work Practices
   Contractors moving toward new domestic suppliers may need to work with different materials, specifications, or installation methods. Ongoing training ensures electricians and crews adapt without sacrificing safety.
4. Financial Pressures and Risk Management
   Rising costs can tempt some employers to reduce budgets for training or protective equipment. LBA University emphasizes that safety is never optional—especially during times of economic uncertainty. Strong training programs protect not only workers but also companies from legal and financial consequences of accidents.

Strategies for Contractors

To navigate this environment, contractors should consider:

• Updating Safety Programs: Ensure workers are trained to spot counterfeit or substandard electrical components. Specialized training in electrical safety and arc flash awareness helps teams adapt to new equipment without added risk.
• Negotiating Smarter Contracts: Build in escalation clauses for both cost and schedule flexibility.
• Investing in Domestic Partnerships: Work closely with U.S.-based suppliers to guarantee compliance and quality.
• Doubling Down on Training: A strong culture of training is often what separates safe, resilient contractors from those who struggle under pressure. Programs such as OSHA 10– and 30-hour construction safety courses give both crews and supervisors the grounding they need to maintain compliance even when project costs rise.
• Broadening Hazard Awareness: As supply chains shift, so do risks. Awareness programs in areas like RF safety or hazard communication help workers recognize emerging hazards that might otherwise be overlooked.

The Bottom Line

Tariffs may change the cost landscape, but they shouldn’t compromise safety. The electrical and construction industry must respond with resilience, smarter planning, and continuous learning.

At LBA University, our mission is to support contractors with the knowledge and skills needed to adapt confidently to industry changes, whether that’s through electrical safety, OSHA outreach, or hazard awareness training.

By staying informed and prioritizing worker safety, contractors can protect both their people and their projects in this shifting environment.

Explore our training catalog today: LBA University Courses

Stay informed. Stay compliant. Protect your team.