Key Takeaways
- Tariffs on imported asphalt and oil products can shift demand to U.S. producers, boosting local production.
- More domestic manufacturing means more American jobs in refineries, equipment production, and transport.
- Localized supply chains reduce reliance on international shipping, improving delivery times and lowering long-term costs.
- Regions with domestic asphalt capacity experience fewer price spikes during global oil market disruptions.
- New asphalt plants and facilities help grow local economies by generating revenue, infrastructure, and skilled labor opportunities.
We often hear that tariffs drive asphalt prices up, and in some cases, that’s true. But there’s another side to the story, especially when it comes to industries like asphalt paving. When tariffs are used strategically, they can actually encourage more domestic production, support American jobs, and build a more reliable supply chain. That might not lower prices overnight, but it can help stabilize and even reduce costs over time.
Let’s break down how this works in the real world and what it could mean for the asphalt industry, contractors, and you.
More Demand for U.S.-Made Asphalt and Oil
Asphalt is made using binder, which comes from crude oil. Right now, some of that oil and even finished asphalt products are imported. Tariffs on those imports can make U.S.-produced materials more competitive. The result?
- Refineries here at home get busier
- New investment flows into local asphalt plants
- The U.S. industry gets stronger and more self-sufficient
Take Texas and Louisiana, for example. These states are home to some of the largest refineries in the country. With import tariffs in place, local production of asphalt binder has surged in recent years as demand shifts from foreign to domestic sources. More demand means more incentives to upgrade and expand those facilities.
Instead of depending on unstable international supply chains, we’re building up capacity right here. That’s good for pricing stability and even better for long-term access to materials.
More Jobs in More Places
When materials are made locally, that means more jobs across the board:
- Plant and refinery workers
- Truck drivers and freight operators
- Manufacturing techs are building paving machines
- Crews installing and maintaining new equipment
The American Iron and Steel Institute reported that tariffs enacted in 2018 helped protect over 10,000 U.S. manufacturing jobs in steel-related industries. That same principle applies in the paving world, where domestic asphalt production supports hundreds of thousands of blue-collar jobs.
Tariffs can level the playing field between U.S. workers and countries with lower wages or looser regulations. Supporting American manufacturing often leads to more hiring and better-paying jobs.
Local Production = Long-Term Savings
Sure, importing materials might be cheaper in the short term. But that savings disappears when a ship gets delayed, a port gets backed up, or an overseas supplier hikes their prices. That’s why building more of what we need locally just makes sense.
With more U.S. producers in the game, contractors can:
- Get materials faster
- Avoid international shipping delays
- Reduce extra costs from freight, customs, and currency swings
For example, during the pandemic, global shipping rates surged more than 300% due to port congestion and container shortages. U.S.-based suppliers were able to deliver paving materials more consistently, sometimes more affordably than overseas vendors dealing with delays and extra charges.
In a more competitive domestic market, prices often stabilize or even go down over time. It’s not an instant discount, but it’s a smarter way to build pricing resilience.
Reducing Our Dependence on Volatile Oil Markets
Let’s be honest: oil prices are unpredictable. Wars, embargoes, and market speculation all play a role. When we rely less on foreign oil and more on U.S. supply, we’re less at the mercy of international headlines.
In 2022, global oil disruptions led to asphalt price spikes in several states. However, regions with access to local production-like parts of the Midwest-saw more stable pricing due to shorter supply chains and fewer dependencies.
That’s a win for everyone, from paving contractors trying to quote jobs accurately to municipalities planning their budgets.
Stronger Local Economies
When domestic production grows, so do local economies. New plants and jobs mean:
- More tax revenue for towns
- More infrastructure investment
- More skilled jobs for workers in trades and tech
For instance, in 2021, a new asphalt mixing facility opened in Kentucky with the promise of creating 75 full-time jobs. Projects like these aren’t just good for contractors; they stimulate entire local economies, from housing and retail to logistics and transportation.
And when the industry thrives locally, it also means better service and access to materials for customers-from homeowners redoing their driveways to businesses managing large commercial lots.
The Takeaway
Yes, tariffs can raise prices in the short term. But in the long run, they can build a stronger, more reliable American asphalt industry. More jobs. Better infrastructure. And potentially, more affordable paving costs as supply chains stabilize and grow.
If we play the long game, tariffs might just pave the way to a more resilient, self-reliant future.
