How social landlords must respond to Trump tariff impacts

Economic turmoil will have knock-on impacts for affordable housing supply chains in the UK, but it also presents an opportunity for social landlords to demonstrate resilience, argues Peter Brown

Trump's tariff barrage, with a 10% baseline tariff on its goods exports to the US includes a 25% tariff on steel and aluminium imports, materials fundamental to the construction industry. Manufacturing and construction supply chains are directly in the firing line and perhaps more importantly, unforeseen turbulence creates uncertain future costs, risks of contract failure and possibly more company insolvencies. This is no longer a distant concern. How should the sector respond?

Decisive action is needed. The potential impact of these tariffs, particularly on steel and aluminium, will ripple through our supply chains, inflating construction costs and jeopardising project viability. Housing organisations, from the largest G15 to the smallest community-led associations, must adopt a war-room mentality.

First and foremost, financial and cost management must be placed under the microscope. We’re not talking about a casual review; we’re talking about a forensic audit. Review Project Viability with ruthless honesty. Question every assumption, every projection. Factor in the potential price hikes and supply chain volatility. Does that development, once a beacon of progress, now teeter on the edge of unprofitability?

Intensify Cost Monitoring with real-time data. Forget quarterly reports; we need daily tracking. Implement Value Engineering with a scalpel, not a sledgehammer. Identify those cost-saving opportunities without compromising the fundamental integrity of your projects. This requires collaboration with contract partners and innovation, not corner cutting.

Optimise Procurement with a strategic eye. Explore bulk purchasing, leverage existing frameworks, and generate dialogue with peers. This is not about individual gains; it’s about collective strength. Assess Material Alternatives swiftly. Don’t be wedded to traditional methods; explore new materials, new technologies. This is about agility, not complacency. And crucially, Prioritise Preventive Maintenance. A stitch in time saves nine, and in this context, it could save millions.

But financial prudence alone won’t suffice. We must also fortify our funding and advocacy strategies. Maximise Existing Funding. Every grant, every pound, must be squeezed for its full potential. This is about resourcefulness, not wastefulness. Engage Lenders proactively. Open those lines of communication. Understand their concerns, anticipate their demands. This is about partnership, not isolation. And Support Sector Advocacy with unwavering commitment. The NHF and CIH are fighting our corner; we must stand shoulder to shoulder with them. This is about unity, not fragmentation.

Finally, and most importantly, we must protect our tenants. The economic fallout of these tariffs will disproportionately impact the most vulnerable. Boost Advice Capacity with urgency. Train your staff, equip them with the tools they need. This is about compassion, not indifference. Jobs may be at risk. Promote Hardship Funds with clarity and accessibility. Remove the barriers, simplify the processes. This is about support, not bureaucracy. Proactive Arrears Management is crucial. Engage with tenants, listen to their concerns, and develop sustainable solutions. This is about understanding, not judgment. Strengthen Local Referrals. Connect tenants with food banks, credit unions, and other support services. This is about community, not isolation. Provide Practical Energy Advice. Equip tenants with the knowledge they need to navigate rising energy costs. This is about empowerment, not paternalism.

These are not merely suggestions; they are imperatives. The Trump tariffs represent a significant challenge, but they also present an opportunity. An opportunity to demonstrate resilience, innovation, and unwavering commitment to our tenants. The housing sector has weathered storms before, and with strategic planning and collective action, we will weather this one too.

First published in Housing Today.

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