March 13, 2025

Horry County Contractors Discuss Impact of Tariffs on Construction

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News Summary

Local contractors in Horry County are evaluating the long-term impacts of President Trump’s tariffs on imported metals, which have imposed a significant cost increase on construction materials. While some remain optimistic about housing demand in the area, others highlight challenges posed by fluctuating costs and interest rates. As the market navigates these uncertainties, businesses are looking for ways to adapt, ensuring local construction remains viable amidst ongoing tariff tensions.

Tariff Tensions: Local Contractors Weigh In on Future of Horry County Construction

As the impact of President Trump’s tariffs on imported steel and aluminum ripples through the construction industry, contractors in Horry County are beginning to take stock of the potential ramifications on their businesses. The tariffs, which impose a hefty 25 percent charge on all metal imports, have prompted a strong reaction from both the European Union and Canada, who have introduced retaliatory measures targeting various U.S. goods.

Short-Term Calm, Long-Term Concerns

Amidst the mounting chaos, some contractors are unfazed by the immediate effects. Hunter Graves, of Carolina Palmetto Construction, has noted that while he is not presently worried, there’s a cloud of uncertainty looming over the long-term impacts. Many in the industry believe that it will take months for the full effects of these tariffs to surface.

Despite these troubles, Graves maintains the belief that the demand for housing in Myrtle Beach will continue. As a prominent tourist destination and increasingly attractive area for new residents, the local construction market remains viable. The ongoing influx of new individuals looking to settle down suggests resilience in the demand for housing, making the area a focal point for contractors.

Factors at Play: Demand vs. Costs

Another contractor, Charlie Hewitt from Blue Wave Homes, echoes this sentiment, suggesting that demand in Horry County should help pivot the market away from severe fluctuations. However, he also points out that construction costs are subject to annual fluctuations, typically rising between 5 to 10 percent. This trend has proven consistent, with homes that cost $300,000 a decade ago now priced between $400,000 and $500,000, not including additional costs related to land acquisition.

Hewitt emphasizes that interest rates present a more immediate concern for homeowners than the overall price of a house. As rates shift, they could influence buyer behavior and purchasing power, posing challenges to those entering the market.

Barndominiums and Metal Prices

Meanwhile, TJ Norris from The Barndo Co., which specializes in custom barndominiums that require substantial amounts of metal, anticipates some repercussions from the tariffs. However, he asserts that the possible effects will likely be minimal. To mitigate potential fallout, the company has set its sights on domestic sourcing for materials and developed contingency plans should costs spiral.

The Barndo Co. is moving forward with expansion plans in Horry County, recently announcing the opening of a new showroom in Conway, a clear indication of the heightened demand for their products. Norris highlights that Horry County stands as the fastest-growing residential area in South Carolina, with an observable shift in demand occurring inland.

Tariff Standoff: An Ongoing Challenge

With Canada reacting similarly by imposing tariffs on U.S. steel products, the ripple effects of Trump’s decisions are only beginning to take hold. The ongoing standoff further complicates the landscape for local contractors, who are tasked with navigating the challenges posed by **inflated costs of materials** and the subsequent impact on housing prices.

As contractors in Horry County continue to assess the landscape, they find themselves in a precarious position, balancing the immediate demand for residential development with the ominous clouds of uncertainty hovering over material costs due to international tariffs. The local construction industry, while currently stable, could face significant challenges if these policies persist and greater economic consequences unfold.