Camacol announced that it will sue the Government's decree that raises steel tariffs by 35%
The construction sector has sounded the alarms again. Amid a landscape already hit by rising interest rates and the increase in the minimum wage, the Colombian Chamber of Construction (Camacol) announced that it will challenge the National Government's decree that raises tariffs on imports of steel and other key inputs, considering that the measure will further pressure housing costs in the country.
TL;DR
- Camacol plans to challenge a government decree raising import tariffs on steel and other construction inputs from 5-10% to 35%.
- The guild argues the tariff hike will significantly increase housing costs, citing potential rises in final home prices.
- Camacol's president, Guillermo Herrera, stated the decision lacks technical support and will exacerbate the construction sector's slowdown.
- The construction sector is already facing increased costs due to minimum wage hikes and atypical increases in material prices.
- Camacol disputes government claims of high construction company profitability, stating most firms have low net margins.
- The tariff increase could negatively impact employment in the construction sector, which generates over a million jobs.
- Camacol warns that escalating housing costs and reduced access to formal housing could lead to increased urban informality.