The construction of a 31-story wooden skyscraper in downtown Milwaukee, known as the Edison Hotel, has been put on hold. The developer cited the dual impact of new tariffs and persistent high inflation as the primary reasons for the pause.<\/p>\n
The Edison Hotel project was initially planned with an eight-story post-tensioned concrete base and over 100,000 cubic feet of timber, including significant amounts of cross-laminated timber (CLT) and glued-laminated timber (glulam). Neutral, the developer, had previously completed the world\u2019s first large-scale timber component three-hour fire-resistance test, and the project broke ground in June 2025.<\/p>\n
Neutral CEO Nate Helbach told U.S. media:<\/p>\n
\u201cRecent tariff policies and widespread inflation have significantly increased the hard costs of critical building materials. Pausing value engineering is a difficult but prudent step to ensure the long-term success of the 1005 N. Edison project. We remain committed to delivering a resilient, high-quality building for Milwaukee.\u201d<\/p>\n
Tariffs linked to U.S. trade policy<\/strong><\/p>\n The tariff issues affecting the project are closely tied to U.S. trade policy. President Donald Trump and Trade Representative Jamie Greer are reportedly pushing for a new trade agreement with the European Union. Under Section 232 of the 1962 Trade Expansion Act, large timber components commonly used in North American high-rise buildings could face a 15% import tariff.<\/p>\n In April 2025, Helbach indicated that Neutral had begun mitigating exposure to these potential tariffs. At that time, he estimated that if tariffs were applied, project costs could rise by up to $40,000, representing 2.4% of the affected transactions.<\/p>\n New EU-U.S. trade framework increases uncertainty<\/strong><\/p>\n The situation has since worsened. Reports indicate that, under a draft framework being negotiated between EU and U.S. trade officials, large European timber products\u2014such as cross-laminated timber and glulam\u2014are likely to face a 15% tariff when imported into the United States. These materials form the core structural components of the Edison Hotel project, meaning tariffs would directly escalate costs.<\/p>\n The pause in the 31-story Edison Hotel project also casts uncertainty over Neutral\u2019s adjacent plans for a 50-story wooden skyscraper, as the current delay affects the feasibility of future high-rise timber projects.<\/p>","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":96951,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[5204,5812],"tags":[],"class_list":["post-96950","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news","category-global-trends"],"acf":[],"yoast_head":"\n