Against the background of Trump's customs policy, companies are canceling billion-dollar projects, but some are expanding in the USA - media

British construction equipment company JCB plans to double the size of its plant in San Antonio, Texas, to 300,000 square feet amid US President Donald Trump's trade policies, which are causing developers to cancel billions of dollars in clean energy and technology manufacturing projects, UNN writes, citing Сonstruction Dive.

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The automaker cited the Trump administration's tariffs as the main reason for localizing more production.

In addition, Swiss drugmaker Novartis plans to significantly expand its presence in the US, including in Florida, Texas, New Jersey and California. The company recently allocated $23 billion over five years to build six new plants, expand three existing ones and add a new R&D center.

"These expansion announcements are likely to "outweigh the cost of canceled projects," said Ken Simonson, chief economist at the Associated General Contractors of America.

But these projects are more of an exception than the rule in terms of developers' reaction to the tariffs that Trump announced, raised and suspended.

According to the latest data from Cincinnati-based ConstructConnect, project complexity increased again in March, especially for private companies. According to the report, developers canceled nearly twice as many private projects as public ones last month.

Thus, while some firms are expanding in the US in response to tariffs, most are retreating.

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For example, this applies to electric vehicles. Just over a year ago, contractors expressed optimism about the electric vehicle manufacturing boom. According to the Dodge Construction Network, electric vehicle manufacturing, which includes battery packs for electric vehicles, accounted for nearly half of all manufacturing in 2023.

But the momentum around these projects is starting to shift, according to recent project terminations. According to data from Atlas Public Policy, US electric vehicle and battery manufacturers canceled more projects in the first quarter of 2025 than in the previous two years combined.

Atlas Public Policy consultant Sophie Latham explained that while the specific factors differ, a common thread in many cancellations is growing uncertainty. She said changing tariff policies, federal tax credits and unclear Department of Energy funding timelines have made it difficult to finance projects.

The state of manufacturing will largely depend on how tariffs and tax credits change this year. In some cases, these tax credits are the difference between a company investing in the US and abroad, so changes in them could spur more cancellations

Contractors hoping to buy time or delay the impact of tariffs may want to explore avenues such as customs warehouses or foreign trade zones. These programs allow companies to store imported goods without paying duties unless the materials are removed for use in the United States.

Supplement

Western automakers are implementing a "China for China" strategy and Chinese software to regain market share lost to domestic competitors. New models are presented at the Shanghai Auto Show.

Trump said on social media that countries seeking to avoid US import duties should come to America and build on its territory. The head of the White House is convinced that this is the easiest way for anyone who wants to avoid the consequences of US customs policy.