In the first half of 2025, the United States enacted significant adjustments to its import tariff structures—changes that have now been further intensified.

A baseline tariff of approximately 10% continues to apply to a broad range of imports. However, in a major policy escalation as of June 2025, the U.S. increased its tariffs on imported steel and aluminum from 25% to 50%, affecting nearly all global sources. 

This change significantly heightens the pressure on construction material costs worldwide.

Additionally, the scope of affected goods has expanded to include finished goods that incorporate steel or aluminum components. This includes items such as lighting fixtures, kitchen appliances, and sophisticated architectural finishes. 

Countries such as China also continue to face multifaceted and elevated tariff measures, compounding the impact on globally sourced goods.

This evolving trade stance marks a sharp departure from prior U.S. policy and is sending deeper ripples through international supply chains.

While implemented by the U.S., these tariffs inevitably influence global market prices for essential construction materials.

With tariffs on steel and aluminum now doubled to 50%, this dramatic escalation is triggering renewed volatility and upward pressure on global base prices.

Steel, aluminum, lumber, and even manufactured goods like appliances, high-end fixtures, and sophisticated finishes are all traded internationally.

When tariffs raise the cost of these goods in the U.S., the impact often extends worldwide, as manufacturers recalibrate supply chains and adjust pricing strategies.

This ripple effect means luxury construction projects—even outside the U.S.—must contend with increased material costs driven by global shifts, significantly impacting the cost of your new home in Costa Rica.

The situation becomes more complex with finished goods that incorporate steel or aluminum components.

Luxury lighting fixtures, kitchen appliances, and bespoke architectural hardware may now carry elevated costs, even if metal is not their primary material.

These embedded tariffs raise production expenses across the board, pushing prices higher before products ever leave the manufacturing country.

Whether you’re planning to build a house in Costa Rica for personal use or investment, fluctuations in material costs have a direct effect on your bottom line.

Consider a U.S.-based manufacturer producing high-specification LED lighting fixtures.

If the fixture incorporates imported aluminum casings—now subject to a 50% U.S. tariff—that surcharge is built directly into its production cost.

On top of that, if the internal components such as LED modules or electronic drivers are sourced from countries like China, which also face elevated U.S. tariffs, the cumulative impact on pricing can be substantial.

By the time this U.S.-assembled fixture is shipped to Costa Rica, it arrives with multiple layers of tariff-related cost inflation already embedded in its price.

Ironically, it may end up costing more than a comparable fixture sourced directly from Europe—where manufacturers may benefit from more favorable trade agreements and more strategically structured supply chains.



European manufacturers, particularly those in Spain or Italy, may not only benefit from more stable sourcing but also enjoy preferential trade agreements with Costa Rica.

These agreements can reduce import duties, providing a cost advantage over U.S.-sourced goods despite longer shipping routes.

This all reveals a critical shift: the country of final assembly no longer determines cost-effectiveness.

To truly optimize value, a detailed, product-by-product analysis of the entire supply chain is now essential.

This makes a case for informed decision-making, particularly when you’re calculating cost per square meter and optimizing every aspect of the build.

Understanding where raw materials originate, how components are sourced, and through which countries products are routed can make a significant difference in total landed cost.


To fully appreciate the impact on local projects, it's essential to understand Costa Rica's own well-established fiscal framework.

• An Existing Tariff System: Unlike the recent U.S. policy shifts, Costa Rica has long maintained a comprehensive import tariff system. Most goods imported into the country, including construction materials, are subject to duties. These are typically determined by the type of product being imported, based on a detailed schedule, rather than primarily by the country of origin. This, combined with a Value Added Tax (VAT) of 13% applied on top, has always been a significant factor in the cost of high-quality imported goods necessary for luxury construction. When evaluating the total construction cost of your project, it’s essential to look beyond material prices alone. Labor costs, tariffs, import duties, and supply chain dynamics all contribute to the final cost to build a home in Costa Rica.”

• Leveraging Preferential Agreements: Within this framework, Costa Rica has also negotiated trade agreements that can offer advantages. For instance, certain goods imported directly from the European Union, such as specialized aluminum window systems from Spain or Germany, may qualify for significantly reduced import tax rates – sometimes as much as half – provided specific documentation protocols are meticulously followed. This approach can significantly impact the overall cost of building, especially for those planning a dream home or a boutique hotel where premium materials are non-negotiable.

• The Layered Impact of New U.S. Tariffs: The new U.S. tariffs introduce an additional consideration. If the global base cost of a material or product increases due to U.S. tariffs (either on the raw materials used to make it, or on its export if routed through the U.S. market), then Costa Rica's product-specific import duties and VAT will subsequently be applied to this higher initial value. This can compound the cost escalation.

In this evolving financial landscape, SARCO Architects' deep-seated expertise and proactive methodologies translate directly into tangible benefits for your luxury residential or boutique hospitality project. 

Our approach is designed to safeguard your investment and ensure the seamless realization of your unique vision:

• A Holistic Design & Management Process for Proactive Cost Control: SARCO Architects' signature integrated approach—uniting architectural design, interior architecture, lighting design, and comprehensive construction management—is inherently built to navigate complexities like the current tariff landscape. For you, this means that cost implications, including potential tariff impacts, are considered holistically from the earliest design stages, not as an afterthought. We analyze and specify materials and systems with a constant awareness of these financial variables. This contrasts sharply with the traditional 'design-bid-build' model, where pricing and tariff considerations often only surface after design is complete, potentially leading to costly redesigns or construction documents that no longer accurately reflect the best value solutions. Our integrated process ensures that your project benefits from informed decisions made proactively, resulting in greater budget certainty, a seamless transition from design to construction, and ultimately, a superior outcome aligned with your vision and financial parameters.

• Optimize Your Investment with Direct Global Sourcing: We proactively engage and negotiate with original manufacturers worldwide to arrange direct shipments to Costa Rica. For you, this strategy is key to potentially significant cost savings. By circumventing now-problematic U.S.-based distribution routes, we aim to shield your project from compounded U.S. tariffs and unnecessary intermediary markups. This means more of your budget is invested in the superior quality of materials and craftsmanship that define your property, rather than being absorbed by avoidable logistical overhead.

• Achieve Superior Value through Intelligent Brand & Supplier Selection: The current tariff environment can unexpectedly shift the cost-effectiveness of even the most reputable brands. Our team conducts exhaustive "total landed cost" analyses for all critical materials and finishes. The benefit to your project is clear: every sourcing decision is optimized against current market realities, ensuring you receive the best possible value without compromising on luxury or design intent. This empowers you to access the highest quality options that bring your architectural vision to life, preventing overpayment due to newly inefficient supply chains and making your budget work more effectively.

• Leverage Our In-Depth Local Knowledge for Global Savings: Our comprehensive understanding of Costa Rica's intricate customs framework, including vital trade agreements such as those with the European Union, becomes your distinct advantage. For your project, this translates into the strategic pursuit of reduced import duties on eligible premium materials. We meticulously manage the complexities of compliance and documentation, ensuring every opportunity to optimize your expenditure through legitimate trade benefits is actively pursued, directly enhancing your project’s financial efficiency and overall value.

At SARCO Architects, these proactive strategies are fundamental to our philosophy of meticulous planning and unwavering client advocacy. 

Our goal is to transform potential market challenges into opportunities for intelligent savings and enhanced project value, providing you with the confidence and peace of mind to see your exceptional house in Costa Rica come to fruition.