S&P Global Ratings warned that U.S. construction activity is poised to lose momentum in the second half of 2025 as tariffs on imported goods drive up the cost of key building materials. The ratings firm said price increases will squeeze project budgets and weigh on new starts, reversing the sector’s post-pandemic role as a pillar of economic growth. The agency pointed to the 145% tariff on Chinese goods, in force since April, as the chief catalyst for higher input costs and predicted that the construction market will bear the brunt of the policy. With spending already edging lower, S&P cautioned builders and suppliers to prepare for a protracted slowdown.