Insights

As the United States government transitions from the Biden Administration to the Trump Administration, significant changes are already impacting infrastructure policy, with likely consequences to both planned and in-progress infrastructure projects around the country. Disruptions in funding and other policy changes are creating uncertainty for investors and stakeholders involved in infrastructure projects, particularly the potential impacts on projects funded under the Infrastructure Investment and Jobs Act and the Inflation Reduction Act of 2022, as previewed in our January 18thclient alert, “Implications of Incoming Administration Changes to Infrastructure Initiatives.”

The ongoing changes surrounding the U.S.’s position on infrastructure between the outgoing Biden administration and the incoming Trump administration is creating policy uncertainty for investors and companies in the infrastructure space. This instability may raise concerns among stakeholders that the U.S. is not an ideal place to invest because of the policy inconsistency and increases the likelihood of disputes arising from existing and potential foreign investment projects.

President-elect Donald Trump plans to impose widespread tariffs when he takes office in late January 2025. He has stated that one of his first executive orders will be to impose a 25% tariff on all products imported from Canada or Mexico. Products imported from China, such as metals, coatings, plumbing components and HVAC parts, could face an additional 10% tax above current tariffs. The imposition of such tariffs will have significant implications for megaprojects, including large infrastructure developments like highways, bridges, tunnels, airports, and railways, as well as large-scale energy projects like power plants, oil and gas facilities, and renewable energy installations.