Impact of Trump Tariffs on Infrastructure Stocks
Overview
Trump’s tariffs, particularly the sweeping 10% baseline tariff on all imports and higher rates on specific countries, have broad implications for U.S. and global markets. While the most immediate and visible effects have been on technology, retail, and manufacturing stocks, infrastructure stocks are also affected, though the impact is nuanced and sector dependent.
By their nature tariffs disrupt global supply chains, making it harder and more expensive to source essential materials and equipment. This can lead to delays in maintenance cycles, longer lead times for critical components (such as transformers for power grids or cooling systems for data centers), and even shortages. For example, the U.S. imports over 80% of its large power transformers, and tariffs on steel have further constrained supply, increasing both costs and procurement times.