News/Perspective
PerspectiveJuly 31, 2025

Ring-Fencing Tariff Risk in Construction: How Lenders Can Protect Projects Amid Geopolitical Uncertainty

A whitepaper on how construction lenders can structure around materials cost volatility.

NEW YORK, July 30, 2025 – Our latest whitepaper deconstructs the impact of tariffs on the construction industry, and provides actionable strategies that lenders can employ to mitigate risk.

Executive summary

  • President Trump’s 2025 tariffs have increased construction material costs and reintroduced budget volatility, elevating risk for real estate development and construction lending.
  • Key mitigants for lenders include larger contingency budgets, Guaranteed Maximum Price (GMP) contracts, and early buyouts with reputable subcontractors.
  • Bravo Property Trust outlines how strategic underwriting and deal structuring can ring-fence this risk and protect investor capital.

Download the full whitepaper

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