Tariffs could raise HVAC costs
- Air Conditioning Contractors of America and Heating, Air-conditioning & Refrigeration Distributors International said April’s Section 232 tariff rewrite could push up HVAC equipment prices just as contractors enter peak summer replacement season. - The groups said Mexican-made HVAC products that effectively faced about an 8% tariff in late 2025 could now be hit near 25% because duties apply to full product value. - The White House’s April 2 proclamation took effect April 6, changing how steel, aluminum and copper tariffs are calculated and widening cost pressure across building supply chains. (whitehouse.gov)
Air-conditioning trade groups say April’s tariff rewrite could lift HVAC equipment prices as contractors head into the busiest stretch of cooling season. (acca.org) (hardinet.org) Air Conditioning Contractors of America said the biggest change is that steel and aluminum from U.S. mills no longer keep imported HVAC equipment out of Section 232 duties. Heating, Air-conditioning & Refrigeration Distributors International said that change hits products assembled in Mexico, the largest exporter of HVACR goods to the U.S. (acca.org) (hardinet.org) HARDI said late-2025 import data showed Mexican HVACR products were paying an effective tariff rate of roughly 8% because about 84% of their metal content was U.S.-origin. Under the new rules, that same product can lose preferential treatment and face a 25% tariff on the full value of the unit. (hardinet.org) (acca.org) That matters in HVAC because replacement systems are usually bought when an old unit fails, not when prices are favorable. ACCA said the higher duty is likely to move through distributors and contractors before reaching homeowners and commercial customers. (acca.org) The tariff shift came from President Donald Trump’s April 2 proclamation revising Section 232 duties on steel, aluminum and copper, with the changes taking effect April 6. The White House said derivative products substantially made of those metals now pay a flat 25% tariff on full product value, while certain metal articles pay 50%. (whitehouse.gov 1) (whitehouse.gov 2) Customs and Border Protection posted implementation guidance on April 3, giving importers three days to prepare for the new duty treatment. Trade advisers said the rewrite also shifts tariffs to the full customs value of covered products, not just the metal portion. (cbp.gov) (perkinscoie.com) The cost pressure is not limited to HVAC distributors. In Lennar’s March 13 earnings call, Executive Chairman and Chief Executive Officer Stuart Miller said “tariffs and immigration issues” were keeping upward pressure on material and labor costs and pushing overall costs higher. (lennar.com) ACCA said it asked the administration for an exemption for HVACR equipment or at least a 90-day delay so manufacturers could adjust supply chains. For now, the group is telling contractors to tighten job costing, revisit pricing and warn customers that quotes may move. (acca.org)
