Key Takeaways
- Tariffs are taxes on imported goods that can raise the cost of materials used in asphalt paving.
- Asphalt binder is made from crude oil, so tariffs on oil or petroleum products increase asphalt production costs.
- Steel and aluminum tariffs drive up the cost of paving equipment and infrastructure.
- Imported additives and polymers used in advanced asphalt mixes are affected by trade policies.
- Supply chain disruptions from tariffs can lead to material shortages and project delays.
- Contractors may pass these rising costs onto homeowners and businesses in the form of higher paving estimates.
- Smart planning and clear communication with contractors can help manage these fluctuating costs.
If you’ve been planning a driveway repaving or managing a commercial parking lot project, you might be wondering why asphalt costs seem higher than they used to be. One of the reasons? Tariffs.
Tariffs are taxes placed on imported goods, and they can impact industries in ways most people don’t think about, including asphalt paving. While the paving process itself is local, many of the materials, equipment, and products involved are tied to global trade. Here’s how it all connects—and why it matters to you.
What Is a Tariff, and Why Does It Matter?
A tariff is essentially a tax on products brought into the country from elsewhere. Governments use tariffs for different reasons, like protecting local businesses or responding to international trade policies. However, those taxes can make imported goods more expensive. And when materials cost more, contractors often have no choice but to raise their prices to keep up.
How Do Tariffs Affect Asphalt Costs?
You might not think asphalt and global trade go hand in hand, but they do, and here’s why:
1. Asphalt Comes from Oil
Asphalt binder (the sticky black stuff that holds your pavement together) is made from crude oil. If the U.S. places tariffs on imported oil or certain refined petroleum products, those costs trickle down. That means the base material for asphalt gets more expensive, which drives up the cost of your paving project.
2. Tariffs on Steel and Equipment
Paving requires heavy machinery like pavers, rollers, and trucks. These machines are made with a lot of steel and aluminum. When tariffs are placed on those metals, like we saw in recent years, it drives up manufacturing costs. That makes buying and maintaining paving equipment more expensive for contractors, and yes, some of that cost gets passed along.
3. Specialty Products and Additives
Modern asphalt often includes polymers and additives for better durability, especially in commercial or high-traffic areas. Some of these materials are imported, and tariffs on them can cause prices to jump overnight.
4. Supply Chain Disruption
Even if your contractor uses American-made products, tariffs can shift global supply chains. That means delays, product shortages, and price hikes that ripple across the industry.
Real-World Example: Roofing Prices and Canadian Oil
A good example comes from the roofing industry, which also uses oil-based materials. Asphalt shingles are often made with Canadian oil, and when tariffs or import restrictions are placed on it, prices rise across the board. It’s a clear example of how even products labeled “Made in the USA” can be affected by international trade policies.
What Does This Mean for You?
Whether you’re a homeowner looking to replace your driveway or a business planning a parking lot resurfacing, tariffs could be part of the reason quotes are higher than expected. Contractors don’t like raising prices, but sometimes, higher costs for materials and equipment leave them no choice.
You might notice:
- Larger project quotes than in previous years
- More variability in pricing depending on material availability
- Longer wait times as contractors navigate supply chain delays
What Can You Do About It?
While you can’t control tariffs or global trade, you can make smart decisions about your paving project:
- Plan Ahead: Schedule your project early, especially during peak paving season.
- Get Multiple Estimates: Compare bids to understand current pricing.
- Ask Questions: A good contractor will be transparent about what’s driving costs.
- Consider Timing: If costs are spiking due to temporary tariffs or shortages, you might benefit from waiting or locking in a price before increases.
Final Thoughts
Tariffs might seem like a distant political issue, but they affect everyday things, like the cost of paving your driveway or parking lot. Understanding how these hidden costs work can help you plan better and avoid sticker shock.
If you’re planning a paving project and want honest answers about what goes into the cost, get an estimate today. We’re here to help you understand your options and make the most of your investment.
