ACCA, HARDI Warn New Tariffs May Increase HVAC Equipment Costs
Key Highlights
- The removal of exemptions for U.S.-sourced metals means products with high U.S. content face higher tariffs, impacting overall HVAC product pricing.
- Industry groups are urging the administration for exemptions or delays to help the industry adjust supply chains and avoid steep price hikes.
- Contractors should review job costing, update pricing clauses, and communicate with customers to manage potential cost increases effectively.
ALEXANDRIA, Virginia, and COLUMBUS, Ohio — HVAC tariffs are creating new cost uncertainty for contractors after recent changes to Section 232 metals duties, according to ACCA and HARDI.
ACCA said it is closely monitoring April changes to tariffs on steel, aluminum, and copper that could significantly increase HVACR equipment prices across the supply chain.
Previously, steel and aluminum sourced from domestic producers were exempt from Section 232 tariffs, encouraging manufacturers to use American-made materials. That exemption has now been removed.
According to HARDI, import data from late 2025 from Mexico — the largest exporter of HVACR products to the U.S. — showed an effective tariff rate of roughly 8%. Because HVACR products were largely exempt from IEEPA tariffs, nearly all of the tariffs paid were under Section 232. To pay an 8% tariff, that meant that 84% of the metal content was of U.S. origin. Under the new rules, a product that is 84% U.S.-origin metal would not qualify for the 10% tariff but would instead face the 25% tariff on the entire value of the product.
Because the tariff change applies to the entire value of the product and no longer exempts the value of U.S.-origin metal, the effective tariff rate for products made in Mexico will increase significantly, approaching 25%. This will certainly be passed through the supply chain and likely result in significant price increases.
ACCA said it has asked the administration to exempt HVACR equipment or provide a 90-day delay to allow manufacturers time to adjust supply chains. HARDI said it has aslo reached out to the administration.
ACCA is also advising contractors to prepare for potential price increases by reviewing job costing, updating pricing structures, and adding material or equipment escalation clauses to contracts where appropriate. It also recommended proactive communication with customers and closer coordination with distributors for updated pricing visibility.