KANSAS CITY, Missouri (KCTV) The Kansas City metropolitan area has continued to grow, with new developments, projects, and construction announced over the years.
“It’s been really busy,” said Ralph Oropeza, business manager for the Greater Kansas City Building & Construction Trades Council. “We have a record number of projects, and people from all over the country are coming to the Kansas City metro area to work on them. We are extremely excited about the number of projects we have underway.”
There are concerns that President Donald Trump’s 25% tariffs on imports from Canada and Mexico, which go into effect on Tuesday, will stall progress. According to Oropeza, tariffs could create uncertainty and slow or halt projects in the area.
“While larger scale firms that are creating these huge data centers may be able to absorb some of that loss, our smaller scale projects will be directly impacted because there not as affluent with money that is readily available for them to recoup any costs,” according to Oropeza.
“If the smaller projects, which include housing, small commercial, and small industrial, slow down, where will those people work? It directly affects the economy and everyone else.”
Tariffs are taxes levied on goods imported from another country. Companies that import foreign goods pay a tariff, or tax, to the government. Companies could choose to pass on some or all of the tariff costs to their customers. According to Oropeza, tariffs could have an impact on their workforce and apprenticeships, as well as the local economy.
“We go out, we shop, eat at local restaurants, we save a little bit, buy our homes, but we directly impact our local economy,” Oropeza went on. “If work stops or slows, the impact will extend beyond the construction worker. It’s going to be the shop owners, the restaurant owners, the movie theaters where we used to go but can’t now because we can’t afford it because we don’t have jobs.”
The Trump administration has indicated that there may be short-term pain for long-term gains, with manufacturing jobs beginning to flow into the United States as businesses refuse to pay the additional tax.
“For me, it’s buy America first,” Oropeza explained. “I have always supported American products. As union members, we want to support the American workforce, right? However, we have developed into a global economy. The supply chain is no longer limited to domestic markets; it is now global.
The problem arises when you begin to disrupt the supply chain. Yes, we will protect some of our domestic suppliers, but there aren’t enough to form the food chain that, for lack of a better term, feeds these projects.
“You have to rely on our international suppliers to help us with copper for plumbing or electrical, aluminum, wood, wood from Canada, and other materials to help us build homes and buildings. While we support many of our domestic partners, it is our global partners who will undoubtedly be disrupted, with ramifications for construction in the United States.”
The 25% tariffs on Canada and Mexico, combined with the 20% tariffs on Chinese imports, could have a wide-ranging impact.
“Unfortunately for us, we feel it directly,” said Stacia Williams, a wealth advisor and Williams Financial Group co-founder. “When you go to buy something, you will notice if the price has increased. I have some friends in the cosmetology and retail industries who have had to raise the prices of the goods they imported to sell to consumers. As a result, consumers will see price increases.
Williams suggests that now is a good time to review your budget.
“The best way to prepare is to always budget,” Williams explained. “When we talk about budgeting, compare what you’re spending now to what you could spend later.
There is a rule of 50-30-20. Spend 50% of your income on necessities, 30% on wants, and 20% on savings. I always encourage saving, so maybe it’s time to cut back on wants and start putting more money in the savings bucket to ensure you’re covered.”
She also has advice for those planning to retire within the next few years.
“Have a written, holistic income plan,” stated Williams. “Understand where your money will come from in retirement. Understand how that money will grow in retirement.
Determine whether you need a different strategy. Sitting down and working with a professional to create a written income plan will allow you to pivot in the event that something becomes more expensive; you’ll know where you can draw from and adjust your portfolio to remain comfortable.”
If you have any questions, Williams recommends consulting with a professional.
