The ongoing trade tension between China and the United States could have a major impact on the construction industry here in the U.S. if there isn’t a deal reached within the next few months, GlobalData has reported.

Many goods from China, such as aluminum, Canadian lumber, and steel, are needed for home construction and commercial buildings. Since last September, these items have been subjected to a 10 percent tariff.

A construction analyst at Global Data, Dariana Tani, said that higher tariff rates will increase the costs for imported building materials. In turn, the higher costs could cause decreases in job creation and growth in the building industry.

This will affect the spending on infrastructure and will cause disruption of the supply chains and operations of companies. This will also reduce investment in the construction industry and will put construction loans at greater risk.

Curtailing New U.S. Construction Projects

U.S. products subjected to Chinese tariffs could affect the new construction projects based in the U.S. An example of how this came into play took place in October 2018 when a liquefied natural gas (LNG) export terminal being built in Louisiana was postponed by Australia’s LNG Limited following a Chinese-placed 10 percent tariff on all exports from U.S. LNG.

GlobalData’s Tani said that about one-half of the U.S. import value is from intermediate goods, including machine parts, capital equipment, raw materials, and industrial inputs, which is the category into which most Chinese imports that are subjected to the tariffs fall into.

This tariff rate on these products, is like taxing U.S. contractors by increasing the costs of their building materials. At the time of the report, steel producers can’t increase steel production to equal the demand to match the production of foreign steel suppliers. If contractors make the switch to a local U.S. producer, they will face serious delays in receiving the needed building supplies.

This situation might leave contractors in a situation where existing suppliers cannot source what they need so they will need to find a new supplier and pay higher material costs. Contractors and subcontractors will be forced to charge higher prices as well as price risks in their bids. To prevent increasing customer costs, contractors might start cutting corners, which could compromise durability and safety in projects.

On any given day there are thousands of construction projects going on around the globe. But there are some construction projects of mammoth proportions. Here are some of those highly revered construction projects of the World’s largest scale:

Dubailand – This Dubai project is huge. One of the world’s largest. So big three Disney World theme parks could fit inside. This $64 billion venture consists of 278 kilometers and it includes sports venues, eco-tourism, theme parks, science attractions, healthcare facilities, science-related attractions, and even hotels. Inside Dubailand will be the largest hotel in the world, containing a 10-million-square-foot mall and 6,500 rooms. This project is set for a 2025 completion date.

International Space Station – The International Space Station circles the earth every 92 minutes. It was built by a consortium consisting of 5 space agencies and 15 nations, it has construction costs exceeding $60 billion. The eventual costs are anticipated to exceed $1 trillion. And plans are for it to have the ability to house up to a million occupants.

London Crossrail Project – The first underground train system in the world is continuing to grow with 26 more miles of the tunnel being added to connect 40 stations. This project is expected to cost about $23 billion. It is being completed in phases, with the first section becoming operational in 2018 and the last section being in service by 2020.

Bejing Airport – This airport in China saw its first phase completed for the 2008 Olympiad. Further expansion is expected to be done by 2025. Zaha Hadid designed Terminal 1, which incorporates several design concepts of sustainability while presented in a futuristic approach.

South-to-North Water Transfer Project in China – About 50% of China’s population resides in North China. That area only has about 20% of the water resources available in that country. To address the issue, China funded a major construction project consisting of three huge canals, each measuring more than 600 miles in length and carrying water from the three largest rivers in China to the North. It will take 48 years for the project to be completed.

Jubail II in Saudi Arabia – This industrial project spans 22 years with the second phase, an $11 billion expansion, getting underway in 2014. It will include miles of railways, at least 100 industrial plants, roads and highways, and an oil refinery with 350,000 barrels produced daily. The entire project is set to be done by 2024.