HVAC Equipment Gets a Break as Section 232 Tariffs Are Revised
Key Highlights
- Tariffs on HVAC-related steel, aluminum, and copper are reduced from 25% to 15%, effective through 2027, lowering costs for HVACR manufacturers and consumers.
- Incentives for products with high U.S.-melted metal content promote domestic manufacturing and supply chain resilience.
- Industry groups like HARDI estimate nearly $2.3 billion in consumer savings and significant positive impacts on GDP and economic activity.
WASHINGTON — President Donald Trump signed a proclamation modifying Section 232 tariffs on steel, aluminum, and copper imports to encourage greater use of domestically produced metals while supporting key manufacturing sectors. The revised policy lowers tariffs on select HVAC and ventilation equipment to 15%, and provides additional incentives for products containing a high percentage of U.S.-melted and poured steel or aluminum.
The adjustments are scheduled to remain in effect through the end of 2027.
The latest changes to Section 232 tariffs could have significant implications for HVACR contractors, manufacturers, distributors, and end users. Because HVAC equipment relies heavily on steel, aluminum, and copper, tariff adjustments directly influence the cost of furnaces, air conditioners, heat pumps, ventilation products, and replacement components. Lower duties on certain HVAC equipment may help reduce pricing pressure across the supply chain, improving affordability for customers and potentially supporting project demand at a time when contractors are navigating labor shortages, ongoing economic uncertainty, and affordability concerns. At the same time, incentives tied to domestically sourced metals reinforce broader industry trends toward supply-chain resilience, U.S. manufacturing investment, and long-term cost stability.
Heating, Air-conditioning & Refrigeration Distributors International (HARDI) today thanked the Trump administration for the changes.
“This is a welcome change for the HVACR industry by President Trump,” said Alex Ayers, HARDI’s vice president of government affairs. “HARDI's initial analysis shows the adjustment will help consumers keep nearly $2.3 billion in their pockets by avoiding future price increases resulting from the initial tariff increase. For far too many Americans, an unexpected HVAC replacement reduces their spending power in the months that follow. HARDI estimates that these savings will support $2.9 billion in economic activity and preserve $1.7 billion in value added to GDP over the long run that would have been lost under the previous tariff regime, which will help the American economy to continue to grow.”
HARDI has consistently emphasized that HVACR products are complex, highly engineered systems made from a mix of domestic and globally sourced components, and that tariff structures must reflect the realities of modern manufacturing and distribution. HARDI members and contractors had actively raised these concerns with policymakers in previous months, including during HARDI’s Congressional Fly-In and sending nearly 10,000 messages through the association’s grassroots advocacy platform to the Trump Administration and Congress.
“We appreciate the Administration recognizing that access to affordable heating and cooling is a matter of safety and economic stability for American families and businesses,” Ayers continued. “The new lower threshold for domestic metal content in the proclamation will also help many of the product categories not included in the new HVAC exemption.”
ACCA also submitted comments to the Administration in April outlining industry concerns regarding the potential impact of tariffs on equipment availability, affordability, and contractor operations.
ACCA said it will continue monitoring the implementation of the proclamation and any guidance issued by the Administration. The association is encouraging contractors to use its Action Alert to request a full exemption of all HVAC equipment from Section 232.