Global Tariffs Threaten Local Infrastructure, New Survey Reveals

RALEIGH, NC – December 17, 2025 – A growing majority of Americans are sounding the alarm over the impact of global trade policies on their local communities, with new data revealing widespread concern that international tariffs will delay critical infrastructure projects and drive up costs for taxpayers. A new survey released by Brightly Software, a Siemens company, found that a staggering 81% of U.S. consumers are worried that tariffs will postpone necessary upgrades to local infrastructure, while 58% expect the price of maintaining everything from roads to schools to inevitably increase.

The poll of 1,000 Americans paints a picture of a public caught between the necessity of modern infrastructure and the economic pressures of a complex global market. The findings highlight a brewing crisis for local governments, who are facing rising material costs, uncertain federal support, and a public hesitant to foot the bill.

The Hidden Costs of Global Trade

The public's anxiety is not unfounded. Recent trade policies, including the Section 232 tariffs on steel and aluminum imports and Section 301 tariffs on a vast array of Chinese goods, have directly inflated the cost of essential construction materials. Steel, a fundamental component for bridges, water pipes, and public buildings, now carries a 25% import duty, while aluminum faces a 10% tariff. These costs are rippling through the supply chain, leading to higher bids from contractors and budget shortfalls for public works departments.

According to the survey, Americans feel this pressure most acutely in the areas they rely on daily. Transportation infrastructure, including roads and bridges, topped the list of concerns, with 70% of respondents fearing the impact of tariffs. This was followed by hospitals and health system facilities (57%) and public buildings (53%), underscoring the perceived threat to essential community services.

“The survey findings build on the American Society of Civil Engineers’ 2025 Report Card released earlier this year, which underscored the need for resilient, data-driven planning to withstand mounting pressures on infrastructure,” said Jennifer Perkins, senior government industry specialist at Brightly Software. The ASCE’s previous report in 2021 gave America’s infrastructure an overall grade of “C-,” citing a multi-trillion-dollar investment gap. Tariffs now add another layer of financial strain on an already overburdened system.

A Crisis of Confidence and Funding

As costs climb, a crucial question emerges: who should pay? The survey reveals a significant disconnect in public perception. A majority of Americans (52%) believe the federal government holds the primary responsibility for offsetting these increased infrastructure costs. In stark contrast, only 11% believe that burden should fall on local government.

This sentiment creates a precarious situation for municipal leaders. While residents look to Washington for a solution, nearly half of Americans (45%) report they are not confident their own local government can handle the financial strain caused by tariffs. This lack of confidence is compounded by a strong resistance to local tax hikes. Despite 65% of respondents worrying that tariffs will drive up the cost of public services, nearly half (47%) said they would not support local tax increases to protect schools or other public facilities from budget cuts.

This paradox places local officials in a political vise, squeezed between the undeniable need for infrastructure maintenance and the public’s unwillingness to provide the necessary local funds. The concern is particularly potent among younger, working-age Americans. The survey found that Millennials (69%) and Gen X (67%) are more worried about rising service costs than the general population, with Millennial respondents especially concerned about tariffs driving up the cost of school repairs.

Federal Dollars vs. Local Realities

The public’s reliance on federal aid comes at a time when the landmark Infrastructure Investment and Jobs Act (IIJA) is injecting over a trillion dollars into projects nationwide. Signed in 2021, the law represents a historic commitment to revitalizing America’s roads, bridges, water systems, and public transit. However, the purchasing power of these funds is being steadily eroded by the very economic forces the survey highlights.

High inflation and escalating material costs, exacerbated by tariffs, mean that federal dollars do not stretch as far as originally planned. A project budgeted in 2021 may now face a significant shortfall, forcing planners to scale back its scope or delay it indefinitely. Furthermore, many federal grants require a state or local funding match, a hurdle that becomes even higher for municipalities already grappling with tight budgets and resistant taxpayers. The result is that even with a massive influx of federal cash, the gap between available funds and project costs continues to widen for many communities.

Stretching Every Dollar: The Push for Smarter Management

Faced with this challenging economic landscape, city and county leaders are increasingly looking beyond traditional funding mechanisms and towards strategic innovation. With new revenue difficult to secure, the focus is shifting to maximizing the value and extending the lifespan of existing assets. This has fueled a push for sophisticated, data-driven asset lifecycle management.

“Consumers’ concerns about tariffs impacting local infrastructure highlight the need for towns and cities to stretch funding, make smarter decisions about facilities and infrastructure and extend the lifecycle of assets,” said Nigel Hughes, head of product at Brightly Software. This approach involves using advanced software to track the condition of every asset—from a water main to a school roof—and using predictive analytics to determine the most cost-effective time for maintenance or replacement. By prioritizing preventative repairs over costly emergency fixes, municipalities can stretch their limited dollars further.

Organizations from Baltimore City Public Schools to Oneida County are already implementing these strategies, using detailed asset data to make difficult financial and operational decisions. By understanding the true condition and long-term cost of their infrastructure, they can create resilient capital plans that absorb economic shocks like tariffs and supply chain disruptions. This proactive planning allows them to keep critical projects moving forward and ensure public services remain reliable, even when facing a perfect storm of rising costs and uncertain funding.